2018 sustainability report - noble energy · 2018 sustainability report operating effectively means...
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2018 SUSTAINABILITY HIGHLIGHTS
SOCIAL
Making a difference where we live and operate
GOVERNANCE
Conducting business ethically, responsibly and transparently
ENVIRONMENT
Applying a philosophy of continuous improvement to monitor risk, minimize our impacts and raise our operating standards
2018 Sustainability ReportOperating effectively means operating safety and responsibly. Our 2018 Sustainability Report shows how we work continually to improve our performance in environmental, social and governance areas. It’s all part of our commitment to Energizing the World, Bettering People’s Lives®.
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Protect workers, the environment and communities where we operate
Respect human rights and the cultures of communities where we operate
Conduct our business in compliance with legal and regulatory require-ments and in a transparent manner
Engage with stakeholders to better understand their perspectives, to inform decision-making and to seek mutually beneficial solutions
Foster a culture where innovation and inclusion are embraced and a collaborative learning environment maximizes everyone’s potential
Develop and maintain strong relation-ships with our contractors to achieve operational and environmental, health and safety excellence
Make social investments that create value for stakeholders on a sustainable basis and are consistent with our business objectives
Our actions are guided by a steadfast commitment to deliver value to our shareholders, our people and our communities.
Our Sustainability Commitments
Reduce our impact on the environ-ment by developing and applying best-practice technologies, such as:
Responsible management of water supply and quality including sourcing, well integrity, transport, use, treatment, recycling, reuse and disposal
Management of air emissions, including greenhouse gas emissions and ozone precursors (volatile organic compounds and nitrogen oxides)
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A Message from Dave Stover
Dear Stakeholders,
For more than 87 years, Noble Energy has been successfully discovering, developing and delivering energy that betters people’s lives and has consistently conducted business ethically and responsibly with respect for people, the communities where we live and work, and the environment. We have built a strong and resilient business.
We have had many conversations with you — our shareholders and stakeholders — about business imperatives, sustainability and our purpose. These discussions contributed to many positive actions in 2018 and to our plans for generating long-term value.
The Sustainability Report presents some of our 2018 accomplishments in environmental, social and safety performance and aligns with well-established ESG disclosure standards that best meet the requirements of our industry and stakeholders.
Our 2018 accomplishments were:
We will report on our climate work later this year in our first Climate Resiliency Report.
Our leadership takes sustainability to heart and recognizes the importance of social accountability and responsible operations. With a hands-on approach, we are committed to people and the environment.
I encourage you to read more about our sustainability investments and performance and invite you to share your thoughts with us as we move forward.
We thank our employees, business partners, contractors and community partners for helping us to continuously improve in safe and sustainable operations.
Developing Safety, Sustainability and Corporate Responsibility committees at Board and executive level
Reducing our total greenhouse gas emissions intensity by 5 percent compared to 2017
Increasing participation in our safety observation program, which reflects and continues the maturity of our NO HARM culture
Contributing more than 4,000 volunteer hours globally with our second Global Day of Caring Progressing our climate risk assessment
David L. StoverChairman and Chief Executive Officer
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About Noble Energy
Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company committed to meeting the world’s growing energy needs and delivering competitive returns to its shareholders. Founded in 1932 and incorporated in Delaware in 1969, Noble Energy is guided by its values, its commitment to safety, and respect for stakeholders, communities and the environment. For more information on how we fulfill our purpose: Energizing the World, Bettering People’s Lives®, visit https://www.nblenergy.com.
OPERATIONS
Our portfolio of assets is diversified through US and international projects and production mix among crude oil, NGLs and natural gas. Our business is focused on both US onshore unconventional basins and certain global offshore conventional basins in the Eastern Mediterranean and off the west coast of Africa. We have demonstrated our ability to apply geological, drilling, completion and midstream design, operational expertise and a major project-development approach to our US onshore unconventional basins. In the global offshore, we have had notable exploration and major project successes, which have led to major development projects and provided long-lived cash flows to our business.
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Performance Highlights
Economic performance is an integral component of our vision of sustainable development. Noble Energy is committed to generating long-term value and returning free cash flow to investors. To achieve these goals we focus on the following guiding principles:
Execution of a disciplined capital allocation process by:
designing a flexible investment program aligned with the current commodity price environment
maintaining a strong balance sheet and liquidity position Enhancing capital efficiencies by:
utilizing our technical competencies and applying historical learnings from unconventional US shale plays to reduce US onshore finding and development costs
Leveraging the benefits of our well-positioned and diversified portfolio, including:
exercising investment optionality and flexibility afforded by our assets, certain of which are held by production
continuing portfolio optimization actions to maximize strategic value
Capitalizing on a currently low-cost offshore environment with execution of high-quality, long-cycle development projects, such as:
progressing Leviathan Phase 1 field development and monetization of natural gas offshore West Africa
Maintaining financial strength through:
ocusing operational activities on high-margin, high-return assets
improving overall corporate returns
We believe our approach positions our company for sustainability, operational efficiency, and long-term success throughout the oil and natural gas business cycle.
2018 FINANCIAL PERFORMANCE
In 2018, Noble Energy executed strong financial performance against our goals. Key performance highlights were:
Delivered 11 percent total volume growth over 2017
Returned approximately $1.1 billion to investors, including $208 million in dividends, $295 million in share repurchases and $609 million reduction in debt
Delivered $2 billion in strategic portfolio proceeds from asset sales
Exited 2018 with over $4 billion in liquidity, with our agency credit rating outlook improved
LOOKING AHEAD
2019 is of strategic importance for Noble Energy as we transition our business to a long-term sustainable free cash flow profile. We will take a major step on this path in late 2019, as the Leviathan field in the Eastern Mediterranean comes on line and delivers its first sales.
To achieve this, we will focus on our key objective of maintaining capital discipline while delivering top tier performance in the U.S. onshore and global offshore markets. For 2019, we have an organic capital budget of $2.4 billion to $2.6 billion, which is 17 percent lower than 2018. We expect these investments to grow volumes on a pro forma basis by 5 percent for the company as a whole, and 10 percent in the U.S. onshore.
We look forward to continuing to execute on our strategy of generating long-term value and sustainable free cash flow for our shareholders.
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About Our ReportingEnsuring we report on what matters the most to our stakeholders with rigor and transparency
DATA AND APPROACH
About Our Reporting
Noble Energy’s eighth annual Sustainability Report describes the company’s management objectives, approach and performance in environmental, social and governance (ESG) dimensions during calendar year 2018. We strive each year to become more transparent and to improve the rigor and materiality of our sustainability reporting and other public disclosures.
Reporting Frameworks
The primary framework for this report is the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (3rd Edition, 2015) developed by IPIECA, American Petroleum Institute (API), and International Association of Oil & Gas Producers (IOGP). Where we indicate the level of disclosure for a given indicator, we are referring to our response to the common reporting elements within the IPIECA Guidance. We also used the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards and the GRI G4 Oil and Gas Sector Disclosures (G4, 2013) to inform the development of this report. Our combined IPIECA/ API/IOGP, GRI and GRI OGSD Index identifies the management disclosures and performance indicators we report on for 2018, and where the data may be found in this report or in additional documents.
We are currently evaluating other emerging standards, frameworks and guidelines, including the 17 Sustainable Development Goals developed by the United Nations and the standards of the Sustainability Accounting Standards Board. We are also monitoring best practices for climate-related reporting through the Task Force for Climate-related Financial Disclosures. Based on our assessment, we will determine whether and to what degree we will adopt them in the future.
Report Scope
Unless otherwise noted, this report covers activities under our direct operational control during calendar year 2018, which coincides with the company’s fiscal year. All financial data are reported in U.S. dollars and represent the company’s share of operated as well as non-operated oil and natural gas exploration and production activities.
In September 2016, Noble Energy formed Noble Midstream Partners (NYSE: NBLX) to own, operate and develop midstream infrastructure in the DJ and Permian Basins. In this report, we have noted where NBLX operations are represented.
Divestitures, Restatements and Additions
As part of our ongoing portfolio management, we divested certain assets through asset or equity sales, exchanges, dissolutions of joint ventures and other transactions throughout the year.
In April 2018, we divested our U.S. Gulf of Mexico assets with an effective transaction date of January 1, 2018. Also in 2018, we divested our interest in CONE Gathering LLC and the sale of a 7.5 percent interest in the Tamar field.
In April 2017, we acquired Clayton Williams Energy, adding 71,000 net acres adjacent to our existing position in the core Southern Delaware Basin in West Texas.
Also in 2017, we divested our Marcellus upstream and midstream assets in northern West Virginia and southern Pennsylvania. Marcellus data are noted where included.
Data for these assets are included in our 2018 report.
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Assurance
Information in this report has been subject to internal review and we believe it to be correct at the time of reporting. We did not have a third-party assess the report.
Forward-Looking Statements and Other Matters
This report contains forward-looking statements that reflect Noble Energy’s views about future events as of the date of this report. These statements by their nature are subject to risks, uncertainties and assumptions and are influenced by various factors. As a consequence, actual results may differ materially from those expressed in the forward-looking statements. We do not assume any obligation to update forward-looking statements should circumstances, management’s estimates or opinions change.
CORPORATE RESPONSIBILITY MATERIALITY ASSESSMENT
Noble Energy conducted a materiality assessment to identify and prioritize our most significant sustainability topics. We build our sustainability program based upon engagement with key internal and external stakeholders including: Communities where we operate Employees Suppliers Industry thought leaders Investors Voluntary frameworks and certifications Non-governmental Organizations
We assess external stakeholder feedback and learn from industry research and benchmarking to test our business practices and develop recommendations. Our assessment and reporting practices align with the Global Reporting Initiative guidelines. Our material environmental, social and governance topics include:
Environmental
Climate Change Environmental Management and Compliance Spill Prevention Water Management Air Emissions Biodiversity and Ecosystem Services
Social
Personnel Safety Process Safety Employee Attraction and Retention Community Relations Human Rights
Economic and Governance
Corporate Governance Business Ethics Transparency Cybersecurity
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GovernanceConducting business ethically, responsibly and transparently. Listening to, understanding and addressing stakeholder perspectives.
CORPORATE GOVERNANCE
BUSINESS ETHICS
BOARD GOVERNANCE
SUPPLY CHAIN MANAGEMENT
RESPONDING TO STAKEHOLDER CONCERNS
PUBLIC POLICY ENGAGEMENT AND CONTRIBUTIONS
REVENUE TRANSPARENCY
TAX STRATEGY
CYBERSECURITY
INDUSTRY ASSOCIATIONS
TransparencyGovernance
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Corporate Governance
Our Board of Directors and Board committees have responsibility for strategic oversight of all company activities around the world, including sustainability. We provide a full description of our Board structure, including Board member biographies, in the Corporate Governance section of our website. We require more than 50 percent of our Board members to be independent as defined by the New York Stock Exchange and US Securities and Exchange Commission. In 2018, eight of our ten directors met this criterion.
The Board’s four committees have responsibility over various key aspects of our business and include the Audit Committee, Compensation, Benefits and Stock Option Committee, and Corporate Governance and Nominating Committee. In July 2018, our former Environment, Health and Safety Committee was reorganized into the Safety, Sustainability and Corporate Responsibility Committee to further align its primary responsibilities with the executive-level Sustainability and Corporate Responsibility Committee and refine the focus of the committee. Charters for these committees are publicly available on the Corporate Governance page of our website.
We continue to focus on the importance of Board refreshment. In May 2018 we added Barbara J. Duganier to the Board, bringing financial expertise along with extensive leadership and cybersecurity experience. In addition, the Board undertook an evaluation process to identify the skills needed to enhance the strategic direction of the Board. Using these findings, we engaged an independent director search firm to help identify prospective director candidates.
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Business Ethics
We adopt a proactive and comprehensive approach to ethics and compliance that underscores the importance of behaving in an ethical manner at all times. Our Code of Conduct lays out our expectations for directors, officers, employees and contractors worldwide. The Code applies to our majority-owned affiliates and their employees as well as to business partners such as service providers and agents.
We consider our Code of Conduct an integral part of our governance structure and make it widely available as part of our commitment to transparency. In addition to our general Code of Conduct, we also maintain a Code of Ethics for our Chief Executive and senior financial officers. Our Codes of Conduct are publicly available on our Corporate Governance webpage.
All employees, contractors, business partners and other external stakeholders can report ethical concerns or suspected violations or ask questions via an externally managed, anonymous and confidential reporting mechanism called Noble Talk™.
Accessible in multiple languages at all times, Noble Talk offers toll-free or collect-call access, as well as an online presence for users to access. We also encourage our employees to report matters internally to our Global Compliance, Human Resources or Legal departments.
In 2018, 62 cases were reported through Noble Talk. The most commonly reported observations involved discrimination or harassment, conflict of interest and bribery. We assign an investigator to all suspected violations, and we categorize and track each case in our management database. Once per quarter, we report all Noble Talk matters and dispositions of closed matters, including any disciplinary or remedial actions, to the Audit Committee of the Board of Directors. In 2018, we resolved 57 cases, including 7 that resulted in disciplinary action.
We maintain an active global training program with our employees and contractors to combat corruption. In 2018, more than 2,800 employees and contractors were trained on our Code of Conduct. We also held our ninth annual NobleWay Summit where more than 150 employees gathered to hear subject matter experts speak on the topics of ethics, leadership, innovation and inclusion.
As part of our responsibility to uphold and champion our values and ensure a workplace free from harassment and discrimination, we introduced an expanded, updated training session on workplace respect and preventing workplace harassment during the fourth quarter of the year. The training is one of several resources available to ensure employees can successfully navigate today’s work environment. Nearly half of our employees (1,272) completed the multi-hour session within the first 30 days.
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Board Governance
Our Board’s Safety, Sustainability and Corporate Responsibility Committee (SSCR) determines whether the company has appropriate policies and management systems in place with respect to environment, health and safety, oversees implementation of our Corporate Social Responsibility Policy and serves as a forum to review our social investment strategy and environmental, social and governance (ESG) initiatives.
The Safety, Sustainability and Corporate Responsibility Committee’s six Directors met three times during the year to discuss Noble Energy’s activities and progress on a variety of topics, including:
Company and contractor EH&S policy and management systems
EH&S safety performance
EH&S strategic outlook
EH&S compliance auditing
The SSCR Committee regularly reports out to the Board of Directors and undergoes an annual Board evaluation of its performance. The Board also conducts an annual review of the Committee’s risk, impact and opportunity assessment and management procedures.
Our Board plays an active role in assessing the impacts of our exploration and development operations prior to approving our entry into any new country. Our pre-entry analysis includes technical feasibility, commercial attractiveness and above-ground risk, which includes the impact of our operations on the environment and any local communities.
In 2018, our Board held 12 meetings and its committees held 19 meetings. Each director attended 75 percent or more of the aggregate of all meetings of the Board and the committees on which the director served during 2018. In 2018, the Board addressed a variety of topics such as expansion of shareholder engagement program, board refreshment and board tenure.
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Supply Chain Management
Our aim is to have a diverse supplier base, and whenever possible, we use local or regional suppliers and vendors as a way of supporting economic growth in our areas of operation. This includes small and women/minority-owned businesses. By incorporating diversity throughout our supply chain, we can have a more meaningful impact on our surrounding communities.
We are focused on improving the level of local content throughout our international operations. As part of this effort, we encourage our multinational contractors to include local supplier requirements in their requests for proposals and competitive bids, as a way to support local supplier development.
As part of our screening process for new suppliers, we evaluate all prospective vendors across a variety of areas, such as financial health. We only conduct business with suppliers and contractors who meet our requirements of safe work and operations practices. All Noble Energy vendors and contractors must operate in accordance with applicable laws and regulations relating to labor, health and the environment.
We require each of our suppliers to uphold the tenets within our Corporate Social Responsibility (CSR) Policy and our Code of Conduct. We solicit information on our vendors’ CSR policies, particularly as they pertain to human rights issues, including child labor, forced labor, and grievance mechanisms. We monitor our suppliers’ performance against this policy through regular audits.
We track key safety performance indicators for our contractors, including Lost Time Incidents and Total Recordable Incident Rate (TRIR). For more information regarding these metrics, read about our Health and Safety programs. In addition, we conduct regular audits to measure our suppliers’ compliance with our health and safety requirements.
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Responding to Stakeholder Concerns
We strive to be transparent about issues of concern to our stakeholders. Engaging with employees, communities, investors, government and non-governmental organizations at every level in all our locations is an essential part of this process. We aim to continuously improve our public reporting by identifying and prioritizing the content that is most valuable to our stakeholders and of greatest relevance to safe and responsible operations. We determined the content of this report through a materiality analysis based heavily on a combination of external and internal stakeholder feedback and research.
We work to engage with our communities throughout every stage of operations to gain perspectives and understand their concerns. We use several engagement methods, including meetings, surveys and research, grievance hotlines, online channels such as www.noblecolorado.com and direct interaction with diverse audiences. These engagements ensure we reach the widest possible audience in soliciting feedback – both positive and negative – about our operations.
In the DJ Basin, our largest onshore asset, we established several practices in response to stakeholder input, including:
For each new operating location, we conduct baseline surveys and impact assessments that evaluate noise, light, and odors. As needed, we implement mitigation measures to reduce these impacts and follow up to assess their effectiveness. We conduct similar assessments on legacy projects that predated this baseline survey process.
We work with the Colorado Oil and Gas Conservation Commission (COGCC) to install effective sound barriers (acoustic panels) to reduce noise around our drilling operations. We also participate in a COGCC technical working group to share best practices and ways to mitigate noise.
We limit light pollution by carefully positioning lights and using them only during specific activities and by taking advantage of natural topography or constructing temporary or permanent light shields.
We work to reduce odor from our operations by using closed-loop systems to store drilling mud, green completions to reduce flaring and combustion burners to avoid venting of emissions during production.
We also operate a landowner hotline in the DJ Basin as a channel for landowners impacted by our operations to provide feedback or lodge concerns and receive timely, respectful and consistent responses.
Because most of our onshore assets are in rural areas, the most common community concerns expressed relate to truck noise and truck traffic impacts on roads. To minimize and manage these temporary disturbances, we implement specific road-use strategies. Our efforts include keeping large trucks off roads during school bus-route hours and, in many cases, installing pipeline transportation systems to eliminate the need for trucks to move our products.
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Public Policy Engagement and Contributions
We believe active participation in the political process is essential to our long-term success. We advance our public policy agenda through direct lobbying, involvement in trade associations, the Noble Energy Political Action Committee (NEPAC) and corporate political contributions.
In 2018, Noble Energy once again was in the first tier of the CPA-Zicklin Index published by the Center for Political Accountability. The CPA-Zicklin Index measures the transparency policies and practices of the entire S&P 500 listing of major companies. We remain committed to transparency and accountability in our political spending.
Our Political Law Compliance Program ensures continued compliance with U.S. federal, state and local regulations on campaign finance, lobbying and gifts and entertainment, and with guidelines for employee representation and participation in trade associations. Our Board’s Corporate Governance and Nominating Committee provides oversight for our political activity. In 2018, our federal lobbying expenses were $2.07 million. Click here for a full list of federal issues lobbied by Noble Energy.
NEPAC provides employees a voluntary opportunity to contribute to candidates for state and elected office. Employees contributed $51,310 to NEPAC for 2018. NEPAC donations to candidates for political office totaled $117,050. More information is in our 2018 Full Year Political Activity Report. The governance page of our website shows our political activity guidelines and an archive of our political activity reports.
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Revenue Transparency
We are a supporter of the Extractive Industries Transparency Initiative (EITI), a voluntary multi-stakeholder initiative which promotes the open and accountable management and governance of natural resources through disclosure and authentication of company payments and government revenue receipts from oil, natural gas and mineral development.
In 2018, we operated in one country, Cameroon, that has previously been validated as EITI compliant, and in June 2018 the EITI Board declared that Cameroon has demonstrated meaningful progress in implementing the current EITI Standard. In October, Noble Energy was invited by the government to join Cameroon’s EITI Committee, a multi-stakeholder group.
We also engaged with other countries where we operate or have interests, where those countries have expressed interest in becoming candidate countries and eventually validated.
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Tax Strategy
Noble Energy is committed to the highest standards of ethics, integrity, honesty and compliance, and this includes global tax laws. We value our reputation for integrity, and we expect the highest standards of integrity and ethical behavior from all our employees, business partners and advisors who work on tax-related matters. We strive to build positive relationships with governments, including government taxing authorities.
tax governanceThe Vice President of Tax, Chief Financial Officer and Audit Committee of the Board of Directors own and oversee our compliance to tax. Jointly, they oversee the effectiveness of our compliance and ensure that policies and procedures are followed. Our approach to tax is reviewed periodically to account for changes in the business environment and our operations and activities, as well as applicable tax laws and regulations.
tax planningWe conduct tax planning that supports our business and is aligned with our commercial and economic activity. We seek to minimize tax cost across all of our operations and major transactions. We do not engage in artificial tax arrangements. We take steps to reduce the risk of double taxation of the same income and adhere to relevant tax laws. We evaluate tax incentives and exemptions offered by taxing jurisdictions and determine their applicability to our business. Overall, we conduct tax planning with an understanding that tax is only one of the many costs to be considered when making investment decisions.
tax risk managementGiven the scale of our operations and scope of our tax obligations, there is always a possibility that tax risks will arise. Such tax risks typically include uncertainties due to changes in legislation, tax law, and regulations. We actively seek to identify, evaluate and manage tax risks as part of our broader corporate-wide risk management and internal
control processes. We implement risk management measures including tax-specific advice, training and internal controls over the tax compliance processes. We seek external advice when significant uncertainty or complexity exists as an additional method of managing our tax risk.
tax risk managementWe seek to create and maintain a respectful, open and cooperative relationship with the tax authorities of the jurisdictions in which we operate. We aim to work collaboratively with all tax authorities and provide requested information on a timely basis. In working with governments to develop sound tax policy, we engage with them either directly or through trade associations. We believe that efficient tax administration benefits both the taxpayer and the taxing authority and can lead to more effective tax policies.
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Cybersecurity
Our operations rely on safe and secure digital technologies, including information systems and related infrastructure as well as cloud applications and services. We use these technologies to process and record financial and operating data, communicate with our employees and business partners, analyze seismic and drilling information and estimate quantities of oil and gas reserves, as well as other activities related to our business.
We have implemented various processes and controls to monitor and mitigate security threats and have increased security of our information, facilities and infrastructure where appropriate. We have conducted training for our workforce on related topics to ensure awareness of and preparedness for various cyber threats. As cyber threats continue to evolve, we will continue to work through our enterprise risk management process to identify threats and determine additional resources needed to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities.
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Industry Associations
Noble Energy seeks to engage with key stakeholders through membership in several oil and natural gas industry organizations, such as:
American Exploration and Production Council
American Petroleum Institute
Consumer Energy Alliance
Colorado Oil and Gas Association
Colorado Petroleum Council
Independent Petroleum Association of America
International Petroleum Industry Environmental Conservation Association
National Petroleum Council
NGV America
Offshore Operators Committee
Permian Basin Petroleum Association
South Texas Energy and Economic Roundtable
Texas Independent Producers and Royalty Owners Association
Texas Oil and Gas Association
USOGA
Western Energy Alliance
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A Strategic Approach to Assessing Needs in Texas
As part of our growing operations in and commitment to our headquarters state of Texas, in 2018 we significantly moved forward in our community engagement. We conducted a community needs assessment to inform and influence our activities, progressed our social investment strategy and initiated an integrated risk assessment.
Our focus was to identify community issues and needs; evaluate business risks and opportunities; and identify potential strategic social investment opportunities to enhance activities in west Texas, south Texas and related to Noble Midstream Partners.
Community Needs Assessment: The study was designed with three primary components:
External – conduct desktop research, external stakeholder interviews (27) and two-day site visits to west and south Texas communities to understand the current socio-economic and health status and identify/validate needs
Internal – Review social investment strategy through discussions with leadership (17), field staff and peer companies to understand current and emerging business risks and opportunities, and gather insights
Social Investment – incorporate key findings, identify recommendations and define next steps to align our social investment strategies with the community needs.
Specific priority areas emerged from the evaluation and provided focus for our social investments to ensure they differentiate Noble Energy, address business risks and opportunities, and/or deliver meaningful benefits to area communities.
Integrated Risk Assessment: As our Permian Business Unit grows, it is essential to apply a process to identify, evaluate and mitigate risks. To achieve this, in 2018, we initiated engagement with a cross-functional, multidisciplinary team to evaluate, process, capture and prioritize key risks related to: operations, environment, health and safety, compliance, public policy, financial, legal, strategic, reputation and social issues.
The initial phase of the assessment focused on analyzing and identifying gaps in work to date. An iterative process, with internal and external analysis, will prioritize the gaps and identify solutions. Once established, the process will minimize or eliminate impacts to business delivery and social license to operate, regulatory uncertainty, and strengthen investor, employee and community support.
We expect to report on the outcome of the integrated risk assessment and subsequent actions in our 2019 Sustainability Report.
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Building Trust Through Transparency in Israel
As we move forward to construction of the Leviathan natural gas production platform off the coast of Israel, we have increased our local stakeholder engagement efforts. Through town halls, individual meetings with community leaders, a Hebrew-language website and a community hotline, we work to understand local concerns and build relationships of trust and transparency.
We’ve learned that local communities are most concerned about the safety and environmental aspects of the offshore operation, so our responses are focused on educating stakeholders about the steps we take to be a responsible operator as well as the economic and environmental benefits of transforming Israel’s energy infrastructure from imported coal to domestic natural gas. One example of this effort to build understanding is a series of videos that give community members a close-up look at how we operate.
In 2018, we held town hall meetings and met with community leaders in seven cities. Our community engagement activities also expanded from local coastal communities near the Leviathan field to a broader national outreach approach including a media campaign using both traditional and social media. The national outreach was especially valuable in building awareness and trust around the project.
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Engaging Stakeholders in Colorado
Throughout Colorado, our community involvement and stakeholder engagement – called the Noble Neighbor program – is a model for how to build positive relationships with the people and communities where we operate. Through engagement and open communication, we continuously work to balance three elements important to Coloradans: the energy we need, the economy we want and the environment we value.
We engage with a variety of stakeholders and diverse audiences to understand their concerns and priorities. We communicate our activities through a dedicated website and a community newsletter reaching approximately 45,000 people. Our Employee Ambassador Program ensures our employees understand issues related to our operations and are prepared to engage in their communities. Our Noble Operations and Safety Training Center (OSTC) in Greeley is available for stakeholder tours, enabling the public to see how we use technology and innovation to protect the environment and health and safety of our workers and communities. In 2018, we hosted 34 tours of the OSTC for a total of 560 people, ranging from students and business organizations to regulators and legislators.
Support for oil and natural gas development remains strong in Colorado. This was most recently demonstrated in the 2018 November election when Colorado voters turned down a setback proposition that would have cut the state’s projected oil and gas output roughly in half by 2023.
We continue to work to ensure our neighbors understand all we do to protect, respect and work together with the Colorado communities we call home.
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SocialMaking a difference where we live and operate.
OVERSIGHT AND MANAGEMENT
HAZARD RECOGNITION AND SAFETY OBSERVATIONS
SAFETY PERFORMANCE
EMERGENCY PREPAREDNESS
NOBLE OPERATIONS AND SAFETY TRAINING CENTER
NOBLE OPERATIONS CONTROL CENTER
RESPECT, INCLUSION AND
COLLABORATION
TRAINING AND DEVELOPMENT
HUMAN RIGHTS
STRATEGY AND APPROACH
COMMUNITY HEALTH
EDUCATION
ENVIRONMENT
COMMUNITY BETTERMENT
Social investmentHealthcare & Safety
People
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Oversight & Management
Exceptional safety performance is critical to our business. The future success of our company begins with keeping our greatest asset – our workforce – safe and secure at all times. We seek to provide our employees and contractors with the safest working conditions possible. We use best practices to equip our workforce with the skills and tools they need to complete their jobs and safely return home at the end of every day.
Our Safety, Sustainability and Corporate Responsibility Committee is responsible for oversight of Noble Energy’s safety programs and processes. The committee assists the Board of Directors in determining whether we have appropriate safety policies and management systems in place across our operations. In addition, we evaluate environmental and health and safety performance as part of our executive and employee compensation plans.
Our Global Environmental, Health and Safety Management System (GMS) is a fundamental framework that creates consistency across our company. The GMS allows us to effectively plan and execute work, as well as measure, analyze and improve safe operational performance. The system leverages industry best practices and regulatory requirements including those of the U.S. Occupational Safety and Health Administration, U.S. Environmental Protection Agency, International Labour Organization, World Bank and others.
We strive to keep safety awareness front-of-mind with both our employees and contractors by integrating the positive attitudes and behaviors that promote and strengthen the foundation of our No Harm culture. One key to preventing incidents is to identify and address potential hazards before they cause a problem. Observing and reporting a hazard creates the opportunity for a conversation about the underlying issue, so that mitigation measures can be taken and lessons can be shared with others to prevent similar hazards.
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Hazard Recognition and Safety Observations
In 2018, we remained steadfast in our focus and communication around hazard identification and observation. Through our mobile app, individuals can note an observed hazard, upload a photo, provide additional context and submit the observation. As use of this tool spread across our organization, employee-submitted observations increased from roughly 300 per month to an average of nearly 3,000 global observations submitted per month by the end of 2018.
We communicate every observation submitted in a daily report that is shared with all Noble Energy employees. We continually utilize this valuable information in safety discussions and company-wide safety communications. We are excited to build upon this momentum and we remain vigilant in reviewing our safety procedures to isolate areas for improvement and close existing gaps. In this way, we will successfully eliminate safety incidents before they ever occur.
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Safety Performance
Our performance over the past several years has continuously improved as our No Harm culture has matured. We believe our performance is top tier compared to our peers even though 2018 rates have regressed from an exceptional year in 2017.
In 2018, we had a Total Recordable Incident Rate (TRIR) of 0.39 for employees and contractors combined, up from 0.22 the previous year.
Our Days Away from Work Incident Rate (DWIR) in 2018 was 0.07, compared with 0.04 in 2017. The increase occurred in areas where a higher number of contractors supported increased activity. We took immediate action to identify and improve best practices. As a result, we strengthened contractor engagement and improved onboarding and bridging of practices with our contractor companies. In addition, we elevated this matter to an executive-level engagement to ensure the opportunities for improvement were given the highest priority. Through our NO HARM Contractor Outreach Program, we partnered with these contractors to better align our safety cultures.
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Emergency Preparedness
We run emergency drills on a regular basis to train for various emergency scenarios. Through these drills, we help keep our employees and facilities in a continual state of preparedness to respond to emergency situations.
Our Emergency Management team conducted multiple Incident Command System (ICS) training and workshop exercises in 2018 to better prepare our people to respond in the event of an emergency. Almost 100 personnel participated. The team also conducted several after action reviews in 2018 to ensure that lessons learned are applied effectively to our emergency response preparations.
In 2018, we held “table-top” drills in onshore Texas, offshore Gulf of Mexico and the Republic of Cyprus. We conducted live drills in the DJ Basin, Equatorial Guinea and Israel:
In the DJ Basin, we organized an unannounced emergency response drill simulating a fire at a Noble Midstream Partners facility. The drill measured Noble Midstream Partners’ and Noble Energy’s incident management capabilities and business continuity plans.
In Equatorial Guinea, we participated in a regional oil spill exercise and in a mass casualty exercise with the local hospital and search and rescue provider simulating a helicopter water landing.
In the Eastern Mediterranean, we participated in the government of Israel’s tier II offshore oil spill exercise.
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Noble Operations and Safety Training Center
The Noble Operations and Safety Training Center, our training center in Greeley, Colorado, is a valuable resource for both hands-on safety training and educating community members – from civic leaders to students – about our operations and the safety steps we take. In 2018, we conducted 127 classes for our employees and contractors in the Operations and Safety Training Center. We also provided 34 training events for 560 individuals in the Colorado community.
Safety training class at the Noble Operations and Safety Training Center
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Safety is our most important responsibility and we are always striving to improve our performance. For this reason, we created the Noble Operations Control Center (NOCC), a nerve center for our northern Colorado operations located in our Greeley office. From this central location, we monitor and remotely control our automated oil and natural gas facilities 24 hours a day.
The NOCC allows technicians to remotely monitor the conditions and performance of our oil and natural gas assets. They can quickly adjust safety, environmental and production controls in real time. In the event of a safety or environmental emergency, we can remotely shut down production at an oil and natural gas facility from the NOCC. Our automated production facilities in the field can also communicate with the NOCC using solar-powered telemetry.
Currently, more than 70 percent of our operations in Colorado are automated and monitored via the NOCC. The vast amount of data consolidated within the NOCC enables our Greeley-based control teams to be the eyes and ears of our operations across the DJ Basin.
The cutting-edge innovation and technology of the NOCC also extends to our personnel in the field. Lease operators – the Noble Energy employees who physically service our facilities in the field – can remotely access the data collected and monitored in the NOCC, greatly improving their effectiveness, efficiency and responsiveness.
Noble Operations Control Center
Our facilities are monitored and controlled remotely in real time 24 hours a day, seven days a week from our Noble Operations Control Center (NOCC)
Solar-powered telemetry in the field communicates remotely with the NOCC
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Strategy and Approach
Our commitment to investing in our communities focuses on the following strategic pillars: Community Health: We support local health
efforts by prioritizing programs that make a significant and lasting positive impact, such as women’s health and malaria prevention.
Environment: In addition to our efforts to lower our own environmental footprint, we support community projects that benefit biodiversity and the environment where we live and work.
Workforce Development and Education: We invest in the success of future generations and the sustained economic growth of the regions where we operate. We support STEAM education and development programs that target underserved student populations.
We further support the communities where we operate through contributions to programs that aim to improve the well-being and quality of life of our communities.
Board-level oversight of our social investment program is provided by the Safety, Sustainability and Corporate Responsibility (SSCR) Committee of our Board of Directors.
For our multi-year strategic social investments, we require a memorandum of understanding (MOU) with our local partners. The MOUs – totaling more than a dozen now – set clear expectations for project deliverables, timeline and measurement with annual assessments of progress.
In 2018, we partnered with an independent organization to evaluate our social investment efforts and performance in Houston and in Equatorial Guinea. These third-party assessments allow us to better identify our strengths and areas for improvement. These reviews also help us confirm
when a program becomes self-sustaining and can be handed over to our partners. And by applying what we learn, we improve our efforts across other geographic areas.
NOBLEACTSThrough NobleACTS, employees can participate in a matching gifts program as well as grants that recognize their volunteer hours. NobleACTS has become an essential part of our global social investment program, reflecting and amplifying our strategic priorities.
Any employee can apply online through the NobleACTS portal to receive two-for-one matching gifts for their charitable contributions or $500 grants for each 20 qualifying volunteer hours. We also allow employees to use up to 45 hours of paid time off annually for volunteer activities, including company-sponsored projects and individual charitable work. Our employees value this as a job benefit that allows them to use a portion of their work hours to give back to their communities.
GLOBAL DAY OF CARINGIn 2018, our executive team, a board member and nearly 1,000 of our employees participated in our second Global Day of Caring, contributing more than 4,000 volunteer hours globally benefitting 19 non-profit organizations. The volunteer hours also generated $67,000 in grants to these organizations through the NobleACTS Global Matching Gifts Program.
TABLE ON FOLLOWING PAGE
MAKING A SIGNIFICANT DIFFERENCE IN THE COMMUNITIES WHERE WE LIVE AND OPERATE
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2017actual spend
2018 actual spend
$4,181,885
$6,470,046 $8,157,979
$1,869,039 $1,090,757
$124,448 $1,254,643
$2,165,383 $1,292,422
$14,810,801 $14,985,468
$0 $0
us
country
Eastern Mediterranean
Gulf of Mexico (non-air related)
West Africa
Global Charitable Matching Gifts Program
Grand Total
Other (Includes new ventures)
$3,189,667
social investment metrics
Strategy and Approach (Table)
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Community Health
Our community health initiatives respond to the specific needs of the communities where we live and work.
Women’s health has become a common thread in many of our strategic initiatives. In Equatorial Guinea, for example, one of our highest-impact initiatives has been helping communities construct wells to provide safe drinking water. We involve the communities in an inclusive process to identify the need and plan the project, using local workers for construction and educating them on sanitation and maintenance. The impacts are many: a healthier community, local jobs, and relief from the need to cart jugs of water from distant sources – a burden that typically falls on the women and children of the community. In 2018, we helped construct four wells in Ngang Nsomo, Mbe Concentrado, Salome and Acurenam, bringing our total to 13 wells since 2008.
More directly, we support women’s health in Equatorial Guinea through our partnerships with the United Nations Population Fund (UNFPA) and Medical Care Development International (MCDI).
The UNFPA maternal health and neo-natal program enables women to take control of their bodies and reproductive health and deliver healthier babies through appropriate pre-natal and childbirth care, and empowers them to become advocates for others. This program reaches nearly 40 percent of the population in two provinces: Bioko Norte and Kie Ntem. Our funding helps build the program’s capacity, including training doctors and establishing clinics where women can obtain the medical counseling and services they need. In 2018, we made it possible for a UNFPA staff member to travel to Houston for training at the Texas Medical Center, the world’s largest medical center.
Our support for Medical Care Development International (MCDI) is helping reduce cervical cancer rates through early screening and treatment.
Phase one of the project continued in 2018, providing cervical cancer screening and treatment (CCST) activities in the consultorios (clinics). The second phase of the project added seven new consultorios throughout Equatorial Guinea in Malabo, Luba, Ebebiyin, Evinayong, Mongomo, and Bata. In 2018, more than 9,000 women were screened for cervical cancer across all clinics on Bioko Island and the mainland region. The project also increases local capacity:
49 health staff trained in cervical cancer screening and treatment techniques;
54 community leaders trained to promote CCST activities and screening seeking behaviors
39 journalists trained to promote CCST activities and screening seeking behaviors
900 health providers trained across all health facilities in Equatorial Guinea.
Another area where we have been working to reduce maternal mortality rates is, surprisingly, Texas. Though a 2016 report showing abnormally high rates in the state has since been shown to be flawed, newer data still indicates disproportionally higher rates of mortality for women of color. Our support for the Legacy Community Health Services High Risk Obstetrical Program aims to reduce mortality rates through connecting women who have risk factors such as diabetes and high blood pressure with specialists early in pregnancy and with delivery hospitals well in advance of due dates to ensure a smooth continuum of care. The three-year pilot program served more than 9,900 high-risk patients from 2016 through 2018. A third-party review found it effective in connecting patients with the resources they need.
Other major initiatives we support focus on wider community health issues.
BETTERING THE WORLD THROUGH COMMUNITY HEALTH
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Our decade-long program to fight malaria in Equatorial Guinea is making strides to eradicate the disease. Transmitted by mosquito bites, malaria infects an estimated 215 million people each year and causes 438,000 deaths. Of these fatalities, 90 percent are in Africa. Our investment – in partnership with Marathon Oil – includes two components: the Bioko Island Malaria Control Program and the Equatorial Guinea Malaria Vaccine Initiative. Since 2004, the Bioko Island program has focused on reducing disease transmission from mosquitos by funding insecticide spraying, mosquito netting and personal protection.
The progress is evident:
The inhabitants of Bioko Island are getting fewer mosquito bites from mosquitos with the malaria parasite
The prevalence of Malaria parasitaemia in children ages 2-14 years has decreased from 45% to 10% in the last two years
The transmission of malaria is not uniform throughout the island; there are areas of zero, low, medium and high prevalence of parasitaemia
Number of confirmed malaria cases at MINSABS centers on Bioko Island has decreased by 60% in the last three years
Experts believe that by addressing both the transmission mechanism (mosquito bites) and the disease resistance (through vaccines), the prevalence
of malaria in the Bioko Island community can be reduced to nearly zero within the next five years.
In Colorado, we focus on helping children and families experiencing trauma stabilize, heal and reintegrate back into their communities through our twelve-year partnership with the Tennyson Center.
We were an early supporter of the Tennyson Center pilot program in Weld County to bring needed services to that community. The results of the pilot program indicate that families are stabilizing. In fact, 94 percent of children enrolled remain in the same living situation and 88 percent remain in the same school placement. The Tennyson Center takes an open approach to each situation and leverages a toolbox of therapeutic options to address the unique needs of each family.
at a glance : fy 2018
32children
female
transgender presents as female
caucasian
middle school age
male
latino/ hispanic
bi-racial
44%
3%
33%
50%
53%
45%
11%
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In Texas, we are working with local health organizations to increase access to health services. In 2018, we partnered to provide dental screenings and services to as many children as possible through a back-to-school event for students residing in the underserved region of Carrizo Springs. The UT Health San Antonio School of Dentistry deployed a mobile van unit and set up portable equipment
inside the community center to maximize the number of individuals that could be served. Children were screened to determine the unmet oral health needs and education on preventive care and oral health were also provided. Children in need of dental primary care services could choose to have an appointment scheduled for treatment at a subsequent visit.
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Education
Our investments in education support the future of our communities – and help enable the future of energy as well.
In Houston, we are building on a partnership with the first high school focused on preparing students for careers in energy. The Houston Independent School District’s Energy Institute High School is a five-year-old STEM-focused magnet school that just moved into its permanent campus in September 2018. Noble Energy commissioned four art pieces for the school that tell the story of oil and natural gas in everyday life. Students and community members participated in the creation of the pieces, bridging art and science in a way that enriches the student experience. As we expand our collaboration in 2019, we plan to bring interns from the school into our headquarters to build very early career experience.
In Texas, we support environmental education through our first-of-its-kind partnership with the Texas Wildlife Association Foundation and its Learning Across New Dimensions in Science (L.A.N.D.S.) program. The L.A.N.D.S. program provides classroom curricula, special presentations, field trips, learning modules, webinars, and interactive video conferencing programs designed to increase natural resource literacy among students in grades kindergarten through eighth grade.
As the program entered its second school year, the local educator – funded by Noble Energy’s support – focused on experiential presentations such as exploring soil composition, experimenting with aquifer models, observing bird biofacts and competing in life-cycle game shows. In all, the educator delivered 488 presentations to more than 12,000 students.
We also continue our extensive support of education programs in Israel to build the workforce needed for the country’s new energy industry. Reflecting the maturity of this effort, we are now hiring technical and professional graduates for our offshore production platform.
Beyond STEM and energy education, we also support student success in other ways.
In Colorado, we continued our partnership with the Denver Center for the Performing Arts (DCPA) to deliver an innovative curriculum that supports Colorado State Standards for more than 924 students served at 18 schools across the state. The curriculum has been taught for 3 years with almost 3,000 students served.
Houston, we support the Youth Program at Aldine Family Hope Center. In the Aldine Independent School District area, there are very few after-school programs or options for low-income families. To address this at-risk population of students and reduce the high drop-out rate in the district, we helped fund an after-school and summer program that includes academic enhancements, social development, character development and practical life-skills. Over the three years since its inception, the program has operated at full capacity and served about 140 at-risk young people during each school year and 100 students during each summer break. The program’s success has been exceptional: 100 percent of students progressed to the next grade level each year and only one program graduate left high school without graduating.
Better lives and a better energy future – education is the path to both.
EDUCATING FOR THE ENERGY FUTURE
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Environment
We want our communities to be greener, healthier places to live. Two major park projects exemplify this commitment with the addition of safe green spaces for recreation, sporting events and community activities.
In Equatorial Guinea, we’ve created a green, welcoming space called Alcaide Park on Bioko Island – where our operations are based. This park is so popular it is at capacity nearly all the time. We have donated the land for a second park in Bata, on the EG mainland, to create a $2 million sustainable greenspace. Phase I, a children’s area, is complete, and in 2018 we began phase II construction. We have worked closely with local vendors and experts to use sustainable materials and appropriate plants so that the area can benefit the community for many years.
In Houston, we continue to support the Bayou Greenway 2020 Project, an initiative of the Houston Parks Board to create a connected 150-mile network of hiking and bike trails and green spaces along the area’s eight bayous. The project benefits are already visible in newly opened trails, bridges and landscaping. And although the project is not designed as flood mitigation, the design creates
natural buffers that can be beneficial in preventing future flood damage. In March 2018, Noble Energy sponsored the fourth annual Bayou Greenway Day, a fun, free family festival on the bayou.
In Colorado, we continued our support of Volunteers for Outdoor Colorado by enabling 98 projects with 4,768 volunteers. These efforts have major results:
Restored 25.7 miles of trail throughout the season
Built an additional 8 miles of trail in 2018
Planted 988 plants, bushes and trees
Planted and harvested 10,450 square feet of urban vegetable gardens and donated over 1,600 pounds of fresh produce to shelters and food banks
In addition to direct financial support, we also donated computers, audio visual equipment, office furniture and a project vehicle to support the organization.
Greener spaces are one way we build better communities.
CREATING GREENER COMMUNITIES
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Community Betterment
Beyond our three primary strategic pillars of social investment, we sometimes find causes that are so crucial they demand our attention, or opportunities for our employees to join together to support the community.
Our support of efforts to fight human trafficking falls in the first category. In 2016, as we helped Houston prepare to host the 2017 Super Bowl, we learned that the city’s location made it an epicenter of human trafficking, and that major events such as sports championships tend to escalate incidents of prostitution-related trafficking. We connected with several non-profits that address this issue and assist the women caught up in it, and have continued to support two of them. Tahirih Justice Center provides free legal and social services to immigrant women and girls fleeing violence, and Love146 is an international human rights organization working to end child trafficking and exploitation through survivor care and prevention. Our support for both these organizations is helping to build their capacity to serve these crime victims.
In 2018, we also partnered with Truckers Against Trafficking (TAT), a 501(c) 3 that exists to educate, equip, empower and mobilize members of the trucking and busing industries to combat human trafficking. The TAT Coalition Build brings together key stakeholders in the trucking and oil and gas industries with law enforcement for a half-day training on human trafficking. Our sponsorship covers half of the cost for a Coalition Build, the Freedom Drivers Project exhibit and two additional days of training for law enforcement and prosecutors. The Freedom Drivers Project is a first-of-its-kind mobile exhibit that is a premier tool in educating members of the trucking industry and general public about the realities of domestic sex trafficking and how the trucking industry is combating it.
In the second category, we created a Global Day of Caring to unite all our employees and locations in
working to make our communities better in large and small ways for a single day. During our second annual Global Day of Caring our executive team, Board of Directors and nearly 1,000 employees in seven regions around the world took a workday to volunteer in the communities where we live and operate. Projects ranged from housing repair in Houston, where many residents are still recovering from Hurricane Harvey, to care kit assembly for U.S. troops serving abroad, to constructing a kitchen outfitted for children with vision and hearing impairments in Equatorial Guinea. In total, the nearly 4,000 volunteer hours benefitted 19 non-profit organizations and were amplified by our global matching gifts program to further deliver critical services and support in our communities.
CARING ABOUT OUR COMMUNITIES
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Respect, Inclusion and Collaboration
Advancing a culture of respect, inclusion and collaboration is a vital aspect of our talent strategy. In both our hiring practices and our selection of vendors, we seek to benefit from the rich cultural diversity of the regions where we operate. Throughout our company, we focus on recruiting from a wide range of cultures and backgrounds to ensure we have the diversity of thought and experience that is essential to innovation and growth.
During the year, we formalized our commitment to strengthen our culture of inclusion. We added internal and external resources for our workforce to provide them with tools to navigate today’s work environment, such as inclusion training programs on respectful workplace and unconscious biases. We expect to advance these efforts in 2019 and beyond through networking and mentoring opportunities, a speaker series, resources, tools and other initiatives.
When hiring within the United States, we post openings on diversity job boards and work with relevant state agencies to reach candidates who have disabilities or are military veterans.
In the Eastern Mediterranean and West Africa, we prioritize the hiring of nationals within each country. This practice benefits our greater workforce development efforts to help establish a deeper pool of talent with the skill sets required for the energy industry. Over the past decade, we have increased the percentage of domestic employees in Equatorial Guinea. Currently, 68 percent of our total employee base are Equatoguineans. In Israel, 86 percent of our total employee base is Israeli.
We continue to evaluate opportunities to partner with external resource groups and other organizations with a diversity focus.
At the leadership level, we continue to focus on improving our executive and board diversity efforts. During 2018, our CEO, the Board of Directors and the
management team successfully led the company through the transition of key executive leadership positions. Noble Energy attracted top talent such as Brent Smolik, President and Chief Operating Officer, and Rachel Clingman, Senior Vice President, General Counsel and Secretary. In 2018, the percentage of females holding executive and senior level positions was 17 percent, compared to 2017 when 8 percent of executive and senior-level positions were held by women.
At the board level, we continue to focus on refreshment and added Barbara Duganier to the Board in May of 2018. Ms. Duganier brings financial expertise along with extensive leadership and cyber security experience. A matrix of relevant skills and diversity attributes for our board of directors is available in the Governance section of this report.
Gender Pay Equity and Gender Pay Gap
Noble Energy conducts an annual analysis to evaluate base pay equity and the gender pay gap across specific disciplines within the U.S. organization. The analysis revealed that employees are paid equitably based on their role, organization and experience.
The analysis also showed:
Noble Energy has actively developed our female talent pool and increased the percentage of women in leadership and technical positions over the past 10 years.
Men and women are promoted with equal frequency within the disciplines reviewed.
Leaders are leveraging talent reviews, workforce planning and developmental work assignments to develop the workforce and further increase the percentage of women in leadership and technical positions.
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Training and Development
2018 marked the seventh year of Noble Energy’s leadership development program, LEAD (Learn, Excel, Achieve and Develop). Of our current executives, 44 percent are graduates of the course or the Executive LEAD program. These 12-month programs prepare individual performers (LEAD) and mid- to senior-level leaders (Executive LEAD) for future succession opportunities. In 2018, 46 employees completed the LEAD program and 5 completed the Executive LEAD program.
Our Wave affinity group for early career professionals hosted a half-day career development conference. Nearly 80 Houston professionals attended a workshop on building credibility and a panel discussion led by four employees who have pursued diverse career paths. Early career employees in Denver and Greeley connected via teleconference to experience the workshop.
In 2018, 27 students participated in our summer intern program – 18 in Houston, 5 in Denver, and 4 in Greeley. We assign our interns a special project to work on throughout the summer. At the end of the internship program, each intern makes a presentation to Noble Energy employees and fellow interns on the outcomes of their projects, as well as lessons learned. We also invite our interns to participate in the early career conference hosted by the Wave affinity group.
13
2
3
2
4
3
environmental engineering
engineering
geoscience
finance & accounting
land
it
internships by discipline
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Human Rights
We strive to be a positive force in our communities, and we remain committed to upholding the highest standards of human rights across our value chain. We promote respect for the rights set forth in the Universal Declaration of Human Rights and the principles articulated in the International Labour Organization’s Declaration of Fundamental Principles and Rights at Work.
For each of our new operating areas, we use third-party assessments to identify potential human rights risks. We respect the cultural values and traditions of local populations, and we actively engage with community members to understand the environmental and human rights impacts of our operations.
We require our suppliers to comply with all human rights provisions and other elements of our Corporate Social Responsibility (CSR) Policy and our Code of Conduct. We also collect information about our vendors’ CSR policies, specifically with regards to human rights, child labor, forced labor and grievance mechanisms.
Within Noble Energy, we have a third-party operated ethics hotline called NobleTalkTM that provides a mechanism for anyone to report violations or concerns. In 2018, the hotline did not receive any reports related to human rights. We experienced no suspected or reported incidents of child labor and no significant disputes with indigenous peoples. We have not conducted any operations that led to involuntary resettlement. In 2018, we had an active community feedback mechanism (CFM) in Israel. We believe that effective CFMs can enhance relationships with our communities and help identify and mitigate emerging issues.
We are committed to providing local site security in a manner that is consistent with international human rights expectations. To support this commitment, we adopt a risk-based approach to providing training on security and human rights for our employees and security contractors. In 2018, we did not identify any new significant security risks to warrant additional training.
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Eagle Ford Reaches Safety Milestone
Our Eagle Ford team celebrated reaching one million man-hours without a recordable incident. We celebrated this accomplishment at the South Texas Safety Summit, where the operations leadership team facilitated conversations and presentations focused on continuous improvement. Our contractor partners and Noble Energy discussed new opportunities to make completions locations more hands-off and safer. Closing out the day, a guest speaker entertained the audience with a thought-provoking and engaging talk on the role of leadership in creating safety culture.
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NO HARM Is Our Aspiration
Across Noble Energy, we have built our culture around the goal of “NO HARM” to people, communities and the environment. Over the past seven years, this philosophy has permeated the organization.
In 2018, we focused our efforts on measuring the effectiveness of our NO HARM programs and performance. We engaged with key internal stakeholders to update our NO HARM maturity model which defines specific behaviors that progress our culture towards sustainable excellence. We will use this tool to develop future action plans for continuous improvement.
Our “Leading NO HARM” training program is an invaluable resource in creating a safety mindset in our employees and contractors. In 2018, we held a total of 16 workshops in which 312 employees and 10 contractor companies participated. To fully leverage our knowledge base, we conducted workshops for Permian Basin and Eagle Ford Shale contractor crews and for our Leviathan project team working stateside for the Eastern Mediterranean.
We set a goal for each member of our US Onshore leadership team to facilitate at least one “Leading NO HARM” workshop during the year. In 2018, nine leaders facilitated workshops, illustrating the importance our top leaders place on building awareness around safe lifestyle and work habits.
Internal safety meetings, conferences and other training events during the year reinforced key principles of NO HARM. The US Onshore Training and Competency team provided safety training to 1,846 learners who participated in 287 classes resulting in 1,128 hours of instruction.
In Israel we conducted:
A Safety Summit with over 200 employees and contractors. The aim was to familiarize the contractor community with our 2018 vision “Zero is Achievable” and our NO HARM culture.
“Foundation of Process Safety” training
“Engaging Leaders in Safety” workshops for operations project teams
Health Week for office and field teams to increase awareness of healthy lifestyles
In Equatorial Guinea, more than 200 employees and contractors participated in the 2018 NO HARM Week, a summit that included:
A health and safety scavenger hunt
“Leading NO HARM” courses
“Engaging Leaders in Safety” workshop
Core safety program information booths
Bioko Island anti-malaria program presentation
Hazard awareness training program for non-operations groups
To share what we have learned with others in the industry, we conducted “Leading NO HARM” training for five of our industry peers. Our leadership in this area was recognized by one of our peers at a meeting of the American Exploration and Production Council (AXPC).
“It was a great opportunity to see what other companies are doing to improve EHS performance. Sharing best practices across our industry is becoming a more common practice and great safety performance is the one metric the industry must continue to reach for perfection. I really appreciated the openness and sharing that Noble exhibited.” – AXPC Member
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Industry Rallies to Advance Road Safety and Emergency Preparedness
As industry activity increases in west Texas, existing infrastructure – particularly roads – is put to the test. In 2018, Noble Energy joined local community members and stakeholders to improve road safety in the Permian Basin as a member of the Permian Road Safety Coalition (PRSC). The coalition serves as a forum for operators, service companies, trucking companies, government and non-government organizations to identify and solutions and to work together to address challenges throughout the Permian Basin Region. We work with safety experts, law enforcement, industry leaders and public officials to make our roads safer for drivers and passengers by advocating for responsible driving habits.
Working together, the PRSC will focus on road safety by:
Leveraging member companies’ collective intellectual expertise to advance best practices for companies and their fleets in the region.
Addressing strategic road safety challenges in select locations by working with local government and stakeholders.
Identifying actionable insights through data collection and management to advance innovative solutions.
Collaborating with the broader road safety community to be the leading voice for the private sector.
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Delaware Basin Emergency Preparedness Initiative
The Delaware Basin Emergency Preparedness Initiative is a coalition of communities and energy companies working with local emergency responders and identifying opportunities to support the response efforts. Noble Energy has provided leadership in identifying opportunities for the industry to assist the emergency responders and to date, has donated and outfitted a truck to the Balmorhea Volunteer Fire Department and conducted H2S emergency training for the Reeves County responders.
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Partnering with Local First Responders
We conducted an Emergency Services Workshop in September at the Reeves County Civic Center in Pecos, Texas. Facilitated by our production operations management and environmental health and safety team, the workshop brought together representatives from the local fire department, police department, EMS and a local hospital. We taught the local responders hazard identification techniques for oil and gas development and production sites. The workshop placed special emphasis on response protocols when responding to an incident or treating a person who may have been exposed to H2S gas. We will continue to evaluate the effectiveness of this program and determine additional education and information needed to address the concerns of stakeholders.
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Safety Summits Contribute to Safety Milestones in Texas
We facilitated multiple contractor summits and safety cooperatives in the Permian Basin during 2018. A variety of contractor partners presented on safety topics pertinent to local operations such as ground disturbance, best practices, working near stored energy, safety protocols and 811 line locate requirements. External agencies such as the Texas Department of Transportation contributed valuable safety tips for navigating travel conditions in west Texas.
Beyond the relationship we foster during these summits, we share best practices and tools to ensure we work together as a community.
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EnvironmentMinimizing our environmental impacts and complying with applicable health, safety and environmental laws, regulations and policies is of fundamental importance to our culture and is reflected in the development and application of best-practices and innovative technologies throughout our operations.
For Noble Energy, minimizing our environmental impacts and complying with applicable health, safety and environmental laws, regulations and policies are of fundamental importance. We reflect our commitment to this ideal through the development and application of best practices and innovative technologies throughout our operations.
We consider environmental protection an integral part of achieving operational excellence. For this reason, we do not capture a separate total dollar figure for environmental protection spending. We continually monitor and measure our environmental risks and remain committed to raising our operating standards to reduce associated impacts of our operations. We manage our efforts through a Global Environmental, Health and Safety Management System.
In 2018, our core environmental programs included:
Greenhouse gas and other air emission reductions (including natural gas production and expansion in Israel that reduces reliance on high-carbon energy sources)
Biodiversity Land use (including facility decommissioning) Water efficiency, conservation and quality Waste management Leaks and spills management
In 2018, we divested our U.S. Gulf of Mexico assets. Data from these assets are included in our 2017 environmental data but, going forward, we will review our environmental programs to focus on the specific risks associated with our updated portfolio. The data and examples shown in each section indicate the scope of our commitment.
ENVIRONMENTAL MANAGEMENT
CLIMATE CHANGE AND GREENHOUSE GAS EMISSIONS
BIODIVERSITY AND LAND USE
WATER EFFICIENCY & CONSERVATION
WASTE MANAGEMENT
CHEMICAL STEWARDSHIP
SPILLS
FINES AND PENALTIES
WELL INTEGRITY
In This Section
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Climate Change and Greenhouse Gas Emissions
APPROACH A fundamental element of our business strategy and approach to risk management is our commitment to continuously improve environmental performance. We are proud of our commitment to reduce emissions across our operations and constructively and broadly engage our shareholders, peers and communities on this important issue.
The Noble Energy Safety, Sustainability and Corporate Responsibility Committee oversees and guides our activities focused on safety, corporate responsibility and sustainability, including work in the area of climate. The committee works closely with the company’s executive-level Sustainability and Corporate Responsibility (SCR) Committee, which provides leadership on the management of climate-related issues. The SCR Committee is supported by a multi-disciplinary working group and external experts on climate.
As part of our commitment to transparency, Noble Energy will publish a climate resiliency report in 2019 informed by the framework of the Taskforce on Climate-related Financial Disclosures and focused on our climate-related governance, strategy, risk management and performance.
REDUCING GREENHOUSE GAS AND OTHER EMISSIONSWe are committed to complying with all applicable air quality rules and environmental regulations. In addition, we look for economic opportunities to prevent or reduce emissions even beyond compliance.
Our global direct greenhouse gas emissions decreased by 6.4 percent year over year in 2018. Our total greenhouse gas emissions intensity, measured as tons of carbon dioxide equivalent per thousand barrels of oil equivalent production, decreased by 4.7 percent.
These changes were the result of upgrades to our physical infrastructure and improved internal controls, notably the improvements we have made to the Clayton Williams Energy assets we acquired in Texas in 2017.
Our drive to implement new technology and replace older equipment also improves sustainability and reduces emissions. For example, tank emissions decreased significantly in the DJ Basin as most production comes from sites with more progressive emission controls than in the past. Improved facility design in the Permian Basin has reduced emission rates, holding VOC emissions flat despite significant production growth.
Continuous improvement in reducing emissions continues to be one of our top environmental priorities. To minimize these emissions, we employ best management practices such as instrument air pneumatic devices. We also use available direct pipeline takeaway access when possible.
We also control emissions and minimize flaring of gas by recovering or re-injecting natural gas and actively pursue sufficient take-away capacity for associated produced gas. In 2018, we prevented emitting more than 201 million cubic feet of methane through increased use of new vapor recovery units in the U.S.
Methane intensity (total methane emitted expressed as a percentage of natural gas production) decreased in 2018 as a result of divesting Gulf of Mexico and Southwest Royalties assets as well as operational improvements. Intensity was 0.09 percent compared to 0.13 percent in 2017.
We continue to upgrade the design of our production facilities to produce oil and natural gas with fewer air emissions, including those emissions for which there are public health standards, such as ozone precursors and particulate matter.
48environment
During the planning phase of our operations, we work to minimize our footprint and potential adverse impacts to surrounding wildlife habitats. Before we commence onshore operations, we use an environmental site screening process to identify local wildlife habitats to minimize our overall impact. This screening process includes identifying wetlands and threatened and endangered species habitats.
In Texas, as part of our environmental site screening process, we work to identify sensitive water bodies early in the planning process. Focusing on avoidance, we integrate mitigation measures during the project development phase.
In Colorado’s DJ Basin, we operate adjacent to the Pawnee National Grasslands, which is managed by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM). These grasslands are home to a variety of wildlife including federally listed threatened and endangered species, eagles and migratory birds. We work closely with USFS and BLM resource managers to ensure we comply with conservation objectives and major federal, state and local permits, approvals and authorization.
Biodiversity and Land Use
49environment
Developing energy resources can require large volumes of water. We have extensive procedures and controls in place to ensure that we source, use, recycle and dispose of it responsibly to minimize the impact of our operations.
WATER USEOnshore, we consumed 86 million barrels of water in 2018 compared to 97 million barrels of water in 2017. This decrease in consumption is due to the divestiture of our Marcellus assets and reduced activity levels in the Eagle Ford Shale. Water withdrawals related to our operations did not have a known significant effect on any water sources.
We recycle and reuse water in our operations whenever practical. In 2018, 4.8 million barrels of flowback and produced water were recycled and reused onshore. This reuse reduces both our freshwater consumption and our produced water disposal volumes.
We have strategically designed our operations infrastructure in the Permian Basin to have options including produced water recycling. This includes a network of water pipelines that enable us to reuse water from one site to another. We increased water recycling in the Permian substantially in 2018.
In the DJ Basin, we continued participation in the South Platte Water Related Activities Program, an organization that allows us to offset water consumption in the DJ Basin to address Endangered Species Act issues related to the South Platte River. The program assists in the recovery of species listed as threatened or endangered under the ESA and works by re-timing water flows to benefit federally listed endangered species.
ONSHORE WATER DISPOSALWe disposed of 57 million barrels of water in our U.S. onshore operations during 2018. None of this water was discharged to surface water bodies.
OFFSHORE WATER DISPOSALWe have eliminated our freshwater consumption in our offshore operations in 2018. Our operations in Equatorial Guinea utilize a process that circulates seawater through the offshore platforms to produce the freshwater we need. Our offshore Israel operations do not currently use freshwater.
Water Efficiency & Conservation
50environment
Waste Management
We work to minimize waste from our operations and recycle where appropriate. Note that various countries categorize waste differently, so it is difficult to create a consistent listing.
In our U.S. onshore operations, we generated the following amounts of waste:
DJ Basin: Contaminated Soil – 114,923 tons; drill cuttings - 75,861 tons; misc. oilfield – 18,780 tons; 8 tons of non-friable asbestos and 123 tons of general waste
Houston: E-waste recycled - 19 ton
Texas Business Unit: Operational solid waste – 3,003 tons; operational wet solids – 10,250 barrels; E&P exempt waste – 73,300 filters; drilling muds – 85,331 tons; drill cuttings – 3,350 tons; and miscellaneous liquid oilfield waste – 14,740 barrels
In our offshore operations, we generated the following amounts of waste:
Equatorial Guinea: Industrial - 112 tons; Industrial Recycled - 77 tons; Hazardous Waste - 155 tons; Domestic - 41 tons; Domestic Recycled - 143 tons; E-waste recycled – 1 ton
Israel: Drill cuttings – 474 tons; drill cuttings recycled – 1,070 tons; general recycled waste – 102 tons; hazardous – 21 tons; hazardous waste recycled – 95 tons; operational waste – 198 tons; general solid waste – 345 tons
51environment
Chemical Stewardship
There have been public concerns raised that the chemicals used in fracturing fluids may reach ground and surface water supplies. We require our site operators to adhere to strict standards and best management practices to avoid potential environmental impacts during onshore oil and natural gas development. We do not store fracturing fluids on location unless necessary – fluids are blended on location and pumped when they are delivered. Flowback fluids are captured in steel tanks and are disposed of according to applicable federal and state laws and regulations. We utilize environmentally friendly fluid additives whenever practical. We do not use diesel fuel in our hydraulic fracturing fluids.
We are an active member and participant in FracFocus.org, a national hydraulic fracturing chemical registry website. We began voluntarily disclosing the chemicals used at our wells through FracFocus.org in mid-2011.
52environment
Spills
Our operations follow standard operating procedures for the assessment and remediation of sites in the event of any leaks or spills. These procedures also apply to historic leaks or spills that we discover. We adopted our procedures in 2015 using guidance supplied by the U.S. Environmental Protection Agency and American National Standards Institute. Our leak and spill recovery procedures provide our employees with a clear set of parameters to ensure that we conduct our remediation activities in accordance with applicable state and federal requirements.
53environment
Fines and Penalties
In September 2018, Noble Energy received approval from the Colorado Oil and Gas Commission (COGCC) of an Administrative Order by Consent (AOC) to pay a $200,000 administrative penalty and contribute approximately $1.4 million toward public projects for Colorado, including plugging and removing orphan wells that were owned, operated and abandoned by others. The AOC resolved discussions between Noble Energy and the State that began in May 2017 when Noble Energy self-disclosed to COGCC non-compliance with Mechanical Integrity Testing requirements for certain wells. The wells were shut-in and not producing oil and natural gas at the time of self-disclosure. Following our self-disclosure, COGCC staff issued Notices of Alleged Violations relating to Mechanical Integrity Testing at eight of our wells. We have plugged and removed seven of the eight wells and are in the process of completing removal activities at the last of these wells.
2016
$35,500
$67,500 $0 $0
$0 $0 $0
$371,236 $193,900 $259,700
- $0 $0
- $0 $0
$0 $0 $0
$0 $0
$474,236 $193,900 $259,700
Marcellus Shale (non-air related)
DJ Basin (non-air related)
Gulf of Mexico (non-air related)
Marcellus Shale (air-related)
Texas (non-air related)
Texas (air related)
DJ Basin (air related)
Gulf of Mexico (air related)
Total
2017
$0
2018
$0
fines
54environment
Well Integrity
Well integrity is a fundamental defense against water contamination. Subsurface evaluations conducted by our geologists and engineers before drilling are used to determine the depths of formations that contain underground drinking water, the proximity of that water to potential oil and natural gas intervals and the integrity of the confining layers above and below the target completion zone. The casing and cementing plan for well construction incorporates these factors into the well design.
Multiple strings of casing and cement are used to prevent natural gas migration or water contamination. We monitor pump pressures and fluid returns during the cementing process to ensure full coverage of cement across the production and groundwater zones. The mechanical integrity of the casing and cement is tested to ensure proper installation at multiple stages of the drilling and completion process, using techniques such as pressure testing, and wire line and bond logging. Well control procedures are in place to prevent events such as spills. During the production phase, we continuously monitor flow rates and annular pressures, and we regularly inspect the wellhead assembly and other equipment for leaks, corrosion or damage.
55environment
Protecting Israeli Wildlife
In 2018, we moved a number of our biodiversity efforts forward, particularly at our offshore operations.
To minimize our impact offshore Israel, we conducted biodiversity training focused on field environment awareness, biodiversity and ecosystem services, wildlife at the work site, discharges to the sea, and ways to better manage waste. We conducted sensitive habitat area surveys along the Leviathan pipeline route to verify chemosynthetic community locations. Chemosynthetic tubeworms were identified in the lower continental shelf near the Leviathan pipeline location. Mitigation and post-pipeline laying surveys showed that none of the tubeworm locations were damaged.
During the initial construction phase of the Leviathan project, we worked diligently to protect the sea turtles from the vessel operating near shore. A detailed procedure for marine mammals – including sea turtle rescue – was developed and training was provided to contractors. Marine mammal observation experts were continuously present on the vessels to advise the crew and inform operations. It is worth noting that the Israeli National Parks Authority report record numbers of egg laying by brown sea turtles recorded last summer (2018). And the numbers of green turtle nests were also higher in relation to previous years.
56environment
Pecos Watershed Initiative
Our investment in the Trans-Pecos and the Pecos River Watershed of west Texas goes beyond energy resources to benefit local communities, lands and wildlife. In 2017, we joined with six other oil and natural gas companies, the USDA Natural Sources Conservation Service, Texas Parks and Wildlife, New Mexico Game and Fish and the National Fish and Wildlife Foundation (NFWF) to launch the Pecos Watershed Conservation Initiative (PWCI). The PWCI is an unprecedented strategic partnership that supports landscape-scale conservation projects in the Pecos River Watershed, which extends from eastern New Mexico into West Texas and composes a large portion of the Permian Basin. The PWCI’s long-term goals include strengthening the health of existing habitats along the Pecos River and its tributaries, improving the management and function of native grasslands, addressing water quality and scarcity concerns for wildlife and agricultural uses, and identifying opportunities to re-establish species to areas of their range where they have been lost or to bolster small remnant populations.
2018 was the first year of project funding. During the year, the PWCI awarded $1.4 million in project grants to restore and preserve riparian and grassland habitats and the species that depend on them in the Pecos River Watershed of eastern New Mexico and West Texas. These funds generated $2.3 million in matching contributions from grantees, for a total conservation impact of more than $3.7 million. Each of these projects employs science-based and cost-effective conservation strategies that will benefit wildlife and habitat in the near future, as well as supporting long-term restoration goals. Our partnership continues into 2019, as we identify and support projects that align with the conservation goals of the PWCI.
“The Pecos Watershed Conservation Initiative represents a new approach to conservation in a landscape that is important to our national economy and is also home to a unique array of wildlife,” said Jeff Trandahl, executive director and CEO, NFWF. “Bringing together ranchers, conservationists, and energy producers is the best way to quickly and effectively implement conservation projects on the ground that help at-risk species today.”
Noble Energy has also partnered with the Western Association of Fish and Wildlife Agencies (WAFWA) to fund the Grassland Restoration and Retention Program (GRRP), focusing on benefitting the burrowing owl. The GRRP works with private landowners in the Trans-Pecos to engage in brush management practices that improve degraded rangeland to a condition where it can be utilized by the burrowing owl. These landscape-scale projects also benefit other grassland species, including quail and antelope. The goal of the GRRP is the restoration of 70,000 acres of grasslands.
“The WAFWA Grassland Restoration and Retention Program is an innovative private/public partnership for conservation on private lands within the energy nexus of the Southern Great Plains. The program leverages donations from companies with funding from state and federal agencies to restore habitat for more than forty grassland species across two target areas, focusing on the lesser prairie-chicken in the High Plains region and the burrowing owl in the Trans-Pecos region.” –Sean Kyle, Industry Services Representative, WAFWA
57environment
Reducing Waste EG
Our employees in the Republic of Equatorial Guinea office initiated a program to reduce the use of plastic water bottles at our Malabo location. Previously, more than 340,000 water bottles (920 bottles per day) were used and disposed of each year at this onshore facility where employees and their families live and work. Ten potable water stations were installed and now serve as the primary source for water. While this contributed to an increase in water consumption onshore EG, water bottle consumption decreased 90 percent to 35,000 (95 per day) bottles per year. This effort reduces plastic waste by more than two tons.
58environment
Reducing Emissions in Colorado
We are proud of our strong commitment to protect human health and the environment in our activities, and we support cost-effective, technically-feasible regulatory programs that enable responsible exploration activities and energy development.
We take actions to reduce emissions from our operations. It is our operational priority to “keep product in the pipe,” and that makes good business sense.
We invest in emissions-reducing technologies and best practices and have advanced operational approaches. We participate in collaborative initiatives focused on emissions detection and reduction and voluntary disclosure. In Colorado, we have supported state regulations to substantially reduce emissions from oil and gas operations through improved leak detection and repair protocols and storage tank emissions management programs.
Looking forward in Colorado, our Mustang Comprehensive Drilling Plan (CDP) ushers in a new era of technology, innovation and continuous improvement. The first-ever CDP approved by the Colorado Oil and Gas Conservation Commission, our Mustang CDP serves as a blueprint for master-planned energy development reducing emissions through innovative designs that eliminate tanks, use electricity rather than diesel and take out older vertical wells. It will also minimizes our footprint by reducing land usage and eliminating truck trips. We are also installing electric power lines in the CDP to further reduce emissions by eliminating the need for diesel generators. These are some of the ways we are doing things better. Learn more about the Mustang CDP here.
The contributions of these initiatives are evident: According to the Regional Air Quality Commission’s latest report for the seven-county Denver Metro/North Front Range area, volatile organic compound (VOC) emissions from oil and natural gas operations in the area decreased 45 percent between 2011 and 2017. At the same time, oil and natural gas production in the measured area increased by 335 percent.
Learn more about our work to reduce air emissions:
Voluntary initiatives: Environmental Partnership, OneFuture
Operations and Technology: Integrated Development Plan, LDAR program, ATLAS
59environment
LDAR
Our Leak Detection and Repair (LDAR) program, which we initiated voluntarily in 2009, brings together our commitments to ensure safe operations, protect the environment, reduce leaks and emissions and improve air quality in Texas and Colorado through the use of advanced technology.
In 2018, the number of components inspected for leak detection and repair decreased as we plugged over 500 facilities, eliminating the emission sources associated with these facilities. Our LDAR technicians inspected 11,299,225 components across our onshore operations and found leaks in less than 1 percent of the components. We rapidly began the process of repairing the leaks, with the majority of them repaired in an average of 3 days.
In just four years, the number of leaks we recorded from valves, pump seals and other components needing maintenance and repair have been reduced by more than 70 percent. This reduction is attributable to preventative maintenance, additional leak detection, repair efforts and other factors.
In the Texas Business Unit (Permian Basin and Eagle Ford Shale) we achieved a 25 percent leak reduction in 2018 compared to 2017.
60environment
Reducing Emissions Offshore
In 2018 we undertook a significant capital investment project to reduce air emissions on our Tamar gas production platform. This project will become operational in 2019 and is projected to reduce methane emissions by approximately 93 percent and non-methane VOC emissions by approximately 98 percent. Additionally, we are implementing process improvements on the platform to contribute to emissions reductions offshore Israel. During the year, we reduced use of fuel gas and optimized our heaters by lowering temperatures at Tamar. Also, we implemented LDAR practices across our operated assets to reduced fugitive emission.
Read more about how Israel’s conversion to natural gas-fired power plants has contributed to cleaner air.
61environment
New Technologies Reduce Environmental Impacts
Flare technology reduces emissions – In south Texas, we replaced production/emergency flares with optical camera-controlled air-assisted flares in our Eagle Ford operations. When installing these flares, we implemented additional piping modifications to increase gas recovery and significantly reduce gas volume being sent to the flares. Additionally, we retrofitted all Eagle Ford permanent flares with thermocouple for pilot temperature monitoring, which allows us to monitor and ensure flares are continuously lit.
Gas conversion filter reduces emissions – In coordination with Noble Midstream Partners, Noble Energy is piloting the use of a gas conservation filter to reduce emissions from our oil production tanks in the Permian Basin. We have contracted with a third party to use the filters, which work on an absorption principle, along with a stripping agent to reduce volatile organic compound (VOC) and greenhouse gas (GHG) emissions. The Texas Commission on Environmental Quality granted us approval to test the use of these filters to reduce tank VOC and GHG emissions as an alternative to flaring.
Tier 4 engine lowers NOx and Particulate Matter emissions – We use certified Tier 4 engines for completion operations in Texas as part of our work to lower emissions and comply with EPA standards. EPA Tier 4 emissions standards were phased in between 2008 and 2015 engine model years based on specific horsepower ranges. Overall the goal for Tier 4 is to lower NOx and particulate matter emissions by approximately 60 percent by integrating new technologies such as exhaust gas aftertreatment, catalytic particulate filters, and NOx absorbers. These technologies lower emissions while increasing efficiency and thus reduce maintenance cost and operational downtime.
62
Environment Performance Data 2019Noble Energy’s eighth annual Sustainability Report describes the company’s management objectives, approach and performance during calendar year 2018. It reflects our commitments to transparency and to improving the rigor and materiality of our sustainability reporting and other public disclosures.
GREENHOUSE GASES, AIR EMISSIONS AND ENERGY (1)
GLOBAL GHG EMISSIONS (METRIC TONS CO2E)
GLOBAL SCOPE 3 EMISSIONS
EMISSIONS (TONS)
2016
2016
2016: GLOBAL
2017: U.S. ONSHORE
2016: U.S. ONSHORE
2018: GLOBAL
2017: GLOBAL
2018: U.S. ONSHORE
2017
2017
2018
2018
Combustion
VOC 14,872 9,4889,125
3,520
6,155 7,623 5,494
NOx 5,697 2,2085,860 5,121 2,316
SOx 11 326 24 31 26
CO 9,340 6,5947,391 5,747 6,363 5,589
(metric tons CO2e)
1,613,107
12,675
1,628,891
13,337
1,652,042
17,088
375,367
83,308
38,438
33,197
317,907
383,106
41,259
30,803
37,197
169,056
554,790
126,073
23,011
29,348
254,920
Fugitive
Mobile
Flaring
Indirect
Venting
63
EMISSIONS BREAKDOWN
U.S. ESTIMATED EMISSIONS REDUCTIONS (MMCF-THOUSAND CUBIC FEET) OF METHANE
GLOBAL ENERGY CONSUMPTION (GIGAJOULES)
(1) IN ACCORDANCE WITH GRI STANDARDS, SOME 2017 DATA HAS BEEN RESTATED AS A RESULT OF CALCULATION METHODOLOGY IMPROVEMENTS AND
TO ENSURE COMPARABILITY.
TBU EGGOM
2016
2016
TOTAL: GLOBAL
ISRAEL (EMBU)
2017
2017
2018
2018
DJ
VOC
NOx
SOx
CO
3,681
1,044
20
1,127
789
IR Camera
Indirect Electricity
2,664
Vapor Recovery Units (VRU)
Diesel
5
Artificial Lift: Smart Lift Automated
Natural Gas
690
Total
Gasoline
Aviation Fuel
Liquefied Natural Gas
Total
-
-
-
-
1,340
148,106
120,266
141
1,472,988
1,787,879
1
-
22,757,079
84
1,621,094
107,829
31,551
7,009
24,811,613
7,623
65,998
216,230
5,121
2,017,498
2,205,127
31
-
22,997,432
6,364
2,083,496
83,914
29,100
11,012
25,542,815
1,813
102,378
145,031
1,272
2,216,921
3,698,171
6
-
21,353,612
4,462
2,319,299
110,378
39,367
6,138
25,352,697
64
WATER
U.S. ONSHORE WATER CONSUMPTION (IN BARRELS)
OFFSHORE WATER CONSUMPTION (IN BARRELS)
DJ BASIN WATER CONSUMPTION (IN BARRELS)
FRESHWATER CONSUMED ON-SHORE MALABO DOS
Recycled or Reused Water
Seawater
Recycled or Reused Water
2017
2017
2017
-
1,376,944
29,404,528
470,000
95,728,234
128,256
42,040,000
97,105,178
29,532,784
42,510,000
2018
2018
2018
123,406
4,844,438
28,135,726
0
81,416,053
0
46,300,000
86,260,491
28,135,726
46,300,000
2016
2016
2016
-
3,610,000
29,378,000
0
46,046,000
244,000
34,608,000
49,656,000
29,622,000
34,608,000
Total Water Consumed
Total Water Consumed
Total Water Consumed
Water from Public or Private Sources
Freshwater
Water from Public or Private Sources
MARCELLUS SHALE WATER CONSUMPTION (IN BARRELS) 2017 20182016
Recycled or Reused Water 826,944
5,109,234
5,936,178
-
-
-
3,610,000
1,104,000
4,714,000Total Water Consumed
Water from Public or Private Sources
65
TEXAS WATER CONSUMPTION (IN BARRELS)
U.S. ONSHORE WATER DISPOSED (IN BARRELS)
OFFSHORE WATER DISCHARGED (IN BARRELS)
2017
37,452,039
19,354,058
2018
56,903,891
20,218,576
2016
18,966,000
15,194,000
Recycled or Reused Water
Total Number
Hydrocarbons (in barrels)
Water (in barrels)
Other (in barrels)
80,000
48,579,000
48,659,000
4,844,438
35,116,053
39,960,491
0
10,541,000
10,541,000Total Water Consumed
Water from Public or Private Sources
SPILLS & FINES
SPILLS 2017 GLOBAL
85
784
1,845
29.5
2016 GLOBAL
95
135.8
172.6
0
2018 GLOBAL
48
742
183
62
2016 ONSHORE
93
135.4
172.6
0
2018 ONSHORE
45
742
182
62
2017 ONSHORE
83
783
1,845
29.5
66
ENVIRONMENTAL FINES PAID
HOURS WORKED
LOST TIME INCIDENTS
RECORDABLE INCIDENTS
2017
2017
2017
2017
2018
2018
2018
2018
2016
2016
2016
2016
MBU (non-air related)
MBU (air related)
Employees
Employees
Employees
DJBU (non-air related)
Contractors
Contractors
Contractors
DJBU (air related)
Total Hours Worked
Combined
Combined
TBU (air related)
TBU (non-air related)
GOM (non-air related)
GOM (air related)
Total
0
0
4,836,744
1
3
0
13,844,767
3
18
$193,900
18,681,511
4
21
0
0
0
0
$193,900
$35,500
$67,500
5,508,378
0
1
$0
8,827,016
3
26
$371,236
14,335,394
3
27
-
-
$0
$0
$474,236
0
0
4,993,462
2
3
0
12,811,233
4
32
$259,700
17,804,695
6
35
0
0
0
0
$259,700
HEALTH & SAFETY (2)
67
TOTAL RECORDABLE INCIDENT RATE (TRIR)
DAYS AWAY FROM WORK INCIDENT RATE (DWIR)
FATALITIES
FATALITIES
(2) IN ACCORDANCE WITH GRI STANDARDS, SOME 2017 DATA HAS BEEN RESTATED AS A RESULT OF CALCULATION METHODOLOGY IMPROVEMENTS AND TO ENSURE COMPARABILITY.
2017
2017
2017
2017
2018
2018
2018
2018
2016
2016
2016
2016
Employees
Employees
Employees
Contractors
Contractors
Contractors
Combined TRIR
Total Days Away from Work Incident Rate
Total Fatalities
0.12
0.04
0
0.26
0.04
0
0.22
0.04
0
0.04
0
0
0.59
0.07
0
0.38
0.04
0
0.12
0.08
0
0.50
0.06
0
0.39
0.07
0
68
CORPORATE GIVING 2017 2018
SOCIAL INVESTMENT
DIVERSITY AND INCLUSION
United States
Cameroon
Cyprus
EG
Israel
US
West Africa*
Eastern Mediterranean
Other*
Total Contribution
NobleACTS (global matching gifts)**
4,181,885
124,448
6,470,046
2,165,383
1,869,039
14,810,801
3,189,667
1,254,643
8,157,979
1,292,422
1,090,757
14,985,468
WORKFORCE DIVERSITY BY COUNTRY
2017 NATIONAL
90%
88%
66%
86%
-
2018 NATIONAL
90%
87 %
68%
86%
-
2016 FEMALE
50%
55%
29 %
29 %
29 %
2018 FEMALE
40%
53%
30%
28%
29 %
2016 NATIONAL
90%
75%
63%
87 %
-
2017 FEMALE
50%
50%
29 %
29 %
30%
69
TOTAL EMPLOYEES
TOTAL 2,2772,274 2,331
2017 20182016
Executives and Senior Managers
Executives and Senior Managers
Mid-level Managers
Professionals
Technicians
Administrative Dupport
Operatives
WORKFORCE DIVERSITY BY JOB CATEGORY
2017 MINORITY
7 %
7 %
15%
21%
31%
33%
22%
2018 MINORITY
10%
10%
14%
24%
33%
39 %
26%
2016 FEMALE
10%
10%
16%
34%
57 %
86%
1%
2018 FEMALE
17 %
17 %
15%
38%
45%
89 %
0%
2016 MINORITY
3%
3%
14%
18%
30%
25%
18%
2017 FEMALE
10%
10%
15%
38%
52%
89 %
1%
(3) IN ACCORDANCE WITH GRI STANDARDS, SOME 2017 DATA HAS BEEN RESTATED AS A RESULT OF CALCULATION METHODOLOGY IMPROVEMENTS AND TO ENSURE COMPARABILITY.
70
CLIMATE CHANGE AND ENERGY
E1: Greenhouse Gas (GHG) Emissions
E2: Energy Use
E3: Alternative Energy Sources
INDICATOR
-
-
-
Full
Full
Not Reported
DESCRIPTION
Report quantity of GHG emissions, including carbon
dioxide and methane, from combustion and
other processes
Energy use: Report total quantity of energy consumed in oil and gas operations or
other business activities.
Report on company research, plans or current initiatives
related to alternative or renewable energy sources.
2018 LOCATION
LEVEL OF DISCLOSURE (2017)
IPIECA/API/IOGP
E8: Other Air Emissions
E9: Spills to the Environment
E10: Waste
E11: Decommissioning
-
-
-
-
Full
Partial
Partial
Full
Report quantities of emissions to the atmosphere from oil and
gas operations.
Describe systems implemented to prevent spills to the
environment and quantify spills including details of any
significant spills and response measures undertaken.
Report quantities of waste from oil and gas operations
Describe the approach to planning and execution of decommissioning activities
(includes abatement, demolition, remediation
and reclamation).
LOCAL ENVIRONMENTAL IMPACT
INDICATOR DESCRIPTION2018
LOCATIONLEVEL OF
DISCLOSURE (2017)
71
WATER
WORKFORCE PROTECTION
PRODUCT HEALTH, SAFETY AND ENVIRONMENT RISKS
INDICATOR
INDICATOR
INDICATOR
DESCRIPTION
DESCRIPTION
DESCRIPTION
2018 LOCATION
2018 LOCATION
2018 LOCATION
LEVEL OF DISCLOSURE (2017)
LEVEL OF DISCLOSURE (2017)
LEVEL OF DISCLOSURE (2017)
E6: Fresh Water
E7: Discharges to Water
HS1: Workforce Participation
HS4: Product Stewardship
HS3: Occupational Injury and Illness Incidents
-
-
-
-
-
Partial
Partial
Full
Partial
Full
Report quantity of fresh water withdrawn or consumed
by oil and gas operations and summarize actions taken
to manage identified risks associated with freshwater use
Report quantities of discharges to a surface water environment
from oil and gas operations.
Describe health and safety management programs
and processes to facilitate participation of the workforce
at all levels in health and safety dialogues.
The company’s approach to assessing and communicating
product health, safety and environmental (HSE) risks.
Report health and safety data on workforce injuries or illnesses resulting from
occupational incidents.
72
PROCESS SAFETY AND ASSET INTEGRITY
COMMUNITY AND SOCIETY
LOCAL CONTENT
INDICATOR
INDICATOR
INDICATOR
DESCRIPTION
DESCRIPTION
DESCRIPTION
2018 LOCATION
2018 LOCATION
2018 LOCATION
LEVEL OF DISCLOSURE (2017)
LEVEL OF DISCLOSURE (2017)
LEVEL OF DISCLOSURE (2017)
HS5: Process Safety
SE1: Local Community
SE5: Local Content Practices
SE6: Local Hiring Practices
SE3: Involuntary Resettlement
SE4: Social Investment
-
-
-
-
-
-
Full
Full
Partial
Full
Full
Full
Report the number and description of Tier 1 and Tier
2 process safety events based on the consequence criteria
defined by API Recommended Practice 754 Process Safety
Performance Indicators for the Refining and Petrochemical
Industries and IOGP’s report entitled Asset Integrity Key
Performance Indicators.
Impacts and EngagementDescribe policies, strategies
and procedures for understanding and addressing
local community impacts and engaging with
affected stakeholders.
Describe policies, programs and procedures related to
local content.
Describe the company’s strategies, programs and
procedures to provide employment opportunities to residents or nationals of host countries and communities.
Describe policies, programs and procedures related to involuntary resettlement
Describe strategies, programs and procedures relating
to social investment, and their effectiveness.
73
HUMAN RIGHTS
BUSINESS ETHICS AND TRANSPARENCY
INDICATOR
INDICATOR
DESCRIPTION
DESCRIPTION
2018 LOCATION
2018 LOCATION
LEVEL OF DISCLOSURE (2017)
LEVEL OF DISCLOSURE (2017)
SE8: Human Rights Due Diligence
SE9: Human Rights and Suppliers
SE10: Security and Human Rights
SE11: Preventing Corruption
SE13: Transparency of Payments to Host Governments
SE14: Public Advocacy and Lobbying
SE12: Preventing Corruption Involving Business Partners
-
-
-
-
-
-
-
Full
Full
Full
Full
Full
Full
Full
Describe the company’s approach to human rights
due diligence including supporting processes.
Describe the approach, programs and processes
to promote respect for human rights and labor practices
by suppliers.
Describe policies, programs and processes related to
security and human rights.
Describes policies, programs and procedures to prevent
bribery and corruption, and mechanisms to
monitor compliance.
Describe policies and programs for the promotion of revenue
transparency.
Describe the company’s approach to managing public
advocacy, lobbying and political contributions
Describe anti-corruption policies and procedures applicable to business
partners, including suppliers and contractors.
74
LABOR PRACTICES
INDICATOR DESCRIPTION2018
LOCATIONLEVEL OF
DISCLOSURE (2017)
SE15: Workforce Diversity and Inclusion
SE16: Workforce Engagement
SE17: Workforce Training and Development
SE18: Non-retaliation and Workforce Grievance System
-
-
-
-
Full
Partial
Full
Full
Describe policies, programs and procedures promoting
diversity and inclusion
Describe the company’s approach to workforce
engagement
Describe approach, programs and procedures for providing
workforce training and development opportunities
Describe non-retaliation policy and confidential workforce
grievance system
75
GENERAL DISCLOSURE
INDICATORDISCLOSURE NUMBER DESCRIPTION LOCATION IN
REPORT
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
102-14
102-15
102-1
102-3
102-4
102-5
102-6
102-7
102-
CEO Letter / A Message from
Dave Stover
Environment
Our Story
Get in Touch
Operations
Our Story, 2018 Annual
Report
Operations
About Noble, Employee Relations,
2018 Annual Report
Our Story
A statement from the most senior decision-
maker of the organization (such as CEO, chair, or equivalent senior position) about the
relevance of sustainability to the organization and
its strategy for addressing sustainability.
A description of the organization’s activities.
b. Primary brands, products, and services,
including an explanation of any products or
services that are banned in certain markets.
A description of key impacts, risks, and
opportunities.
Name of the organization
Location of headquarters
Location operations
Ownersip and legal form
Markets served
Scale of the organization
Full
Partial
Full
Full
Full
Full
Full
Full
Full
LEVEL OF DISCLOSURE
GRI Index
76
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
102-8
102-41
102-9
102-11
102-12
102-13
Employee Relations
Not Reported
Supply Chain Management
We do not use the
precautionary principle
Charters, 2018 Climate Change, CDP, Human Rights
Industry and Advocacy
Associations
a. Total number of employees by employment contract (permanent and
temporary), by gender. b. Total number of
employees by employment contract (permanent and temporary), by region. c.
Total number of employees by employment type
(full-time and part-time), by gender. d. Whether a
significant portion of the organization’s activities
are performed by workers who are not employees. If applicable, a description
of the nature and scale of work performed by workers who are not employees. e. Any significant variations in the numbers reported
in Disclosures 102-8-a, 102-8-b, and 102-8-c (such
as seasonal variations in the tourism or agricultural
industries). f. An explanation of how the data have been
compiled, including any assumptions made.
Collective bargaining agreement
A description of the organization’s supply
chain, including its main elements as they relate
to the organization’s activities, primary brands,
products, and services.
Precautionary Principle or approach
External initiatives
A list of the main memberships of industry or other associations, and national or international advocacy organizations.
Full
None
Partial
Full
Full
Full
77
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
102-45
102-46
102-47
102-48
102-49
102-40
102-42
102-43
102-44
102-50
102-51
102-52
102-54
About Our Reporting,
2017 Annual Report
About Our Reporting
About Our Reporting
About Our Reporting
About Our Reporting
About Our Reporting
About Our Reporting
About Our Reporting
About Our Reporting
About Our Reporting
Report Archive
About Our Reporting
About Our Reporting
Entities included in the consolidated financial
statements
Defining report content and topic Boundaries
A list of the material topics identified in the process
for defining report content
Restatements of information
Change in reporting
List of stakeholder groups
Identifying and selecting stakeholders
Approach to stakeholder engagement
Key topics and concerns raised
Reporting period
Date of most recent report
Reporting cycle
a. The claim made by the organization, if it
has prepared a report in accordance with the GRI Standards, either: i. ‘This report has been prepared
in accordance with the GRI Standards: Core option’; ii. ‘This report has been prepared in accordance with the GRI Standards: Comprehensive option’.
Full
Full
Full
Full
Full
Full
Partial
Partial
Partial
Full
Full
Full
Full
78
GRI 102
GRI 102
GRI 102
102-55
102-56
102-18
About Our Reporting
About Our Reporting
Corporate Governance
a. The GRI content index, which specifies each of the GRI Standards used and lists all disclosures included in the report. b. For each disclosure, the content index shall include: i. the number of the disclosure (for
disclosures covered by the GRI Standards); ii. the page number(s) or URL(s) where the information can
be found, either within the report or in other
published materials; iii. if applicable, and where
permitted, the reason(s) for omission when a required
disclosure cannot be made.
a. A description of the organization’s policy and current practice
with regard to seeking external assurance for
the report. b. If the report has been externally
assured: i. A reference to the external assurance report, statements, or
opinions. If not included in the assurance report
accompanying the sustainability report, a description of what has and what has not been
assured and on what basis, including the assurance
standards used, the level of assurance obtained, and any limitations of
the assurance process; ii. The relationship between
the organization and the assurance provider;
iii. Whether and how the highest governance
body or senior executives are involved in seeking
external assurance for the organization’s sustainability report.
Governance structure
Full
Full
Full
79
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
102-19
102-20
102-21
102-24
102-22
102-25
102-23
102-26
102-27
Safety, Sustainability
and Corporate
Responsibility Committee
Charter
Corporate Governance
Contact the Board
Corporate Governance Guidelines
Committee Membership
Corporate Governance Guidelines,
Code of Ethics
for Chief Executive
and Sernior Financial Officers
Our Leadership
Corporate Governance
Safety, Sustainability
and Corporate
Responsibility Committee
Charter
Delegating Authority
Executive-level responsibility for
economic, environmental, and social topics
Consulting stakeholders on economic, environmental,
and social topics
Nominating and selecting the highest governance
body
Composition of the highest governance body and its
committees
Conflicts of interest
Chair of the highest governance body
Role of highest governance body in setting purpose,
values, and strategy
Collective knowledge of highest governance body
Full
Full
Full
Full
Full
Full
Full
Full
Full
80
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
102-28
102-29
102-30
102-31
102-32
102-33
102-34
102-35
102-36
102-38
102-39
102-37
Safety, Sustainability
and Corporate
Responsibility Committee
Charter
Safety, Sustainability
and Corporate
Responsibility Committee
Charter
Safety, Sustainability
and Corporate
Responsibility Committee
Charter
Safety, Sustainability
and Corporate
Responsibility Committee
Charter, Board
Governance
-
Contact the Board
Not Reported
2019 Proxy Statement
2019 Proxy Statement
2019 Proxy Statement
2019 Proxy Statement
Not Reported
Evaluating the highest governance body’s
performance
Identifying and managing economic, environmental,
and social impacts
Effectiveness of risk management processes
Review of economic, environmental, and social
topics
Highest governance body’s role in sustainability
reporting
Communicating critical concerns
Nature and total number of critical concerns
Remuneration policies
Process for determining remuneration
Annual total compensation ratio
Percentage increase in annual total
compensation ratio
Stakeholders’ involvement in remuneration
Full
Full
Full
Full
-
Full
None
Full
Full
Full
Full
None
81
GRI 102
GRI 102
GRI 103
GRI 103
GRI 103
102-16
102-17
103-1
103-1
103-2
Corporate Governance
and Business Ethics
Corporate Governance
and Business Ethics
About Our Reporting
This disclosure is made in the section for
each material topic.
This disclosure is made in the section for
each material topic.
Values, principles, standards, and norms of
behavior
Mechanisms for advice and concerns about ethics
b. The Boundary for the material topic, which
includes a description of: i. where the impacts
occur; ii. the organization’s involvement with the impacts. For example,
whether the organization has caused or contributed
to the impacts, or is directly linked to the impacts through its
business relationships. c. Any specific limitation
regarding the topic Boundary.
a. An explanation of why the topic is material.
a. An explanation of how the organization
manages the topic. b. A statement of the purpose
of the management approach. c. A description
of the following, if the management approach
includes that component: i. Policies ii. Commitments
iii. Goals and targets iv. Responsibilities v.
Resources vi. Grievance mechanisms vii. Specific
actions, such as processes, projects, programs and
initiatives
Full
Full
Full
Full
Full
MANAGEMENT APPROACH
INDICATORDISCLOSURE NUMBER DESCRIPTION LOCATION IN
REPORTLEVEL OF
DISCLOSURE
82
GRI 103
GRI 201
GRI 201
GRI 201
GRI 201
103-3
201-1
201-2
201-3
201-4
This disclosure is made in the section for
each material topic.
2018 Annual Report
Climate Change, 2018 CDP Climate
Change
2018 Annual Report
Not Reported
Evaluation of the management approach
Direct economic value generated and distributed
Financial implications and other risks and
opportunities due to climate change
Defined benefit plan obligations and other
retirement plans
Financial assistance received from government
Full
Partial
Full
Partial
None
ECONOMIC PERFORMANCE
INDICATORDISCLOSURE NUMBER DESCRIPTION LOCATION IN
REPORTLEVEL OF
DISCLOSURE
83
GRI 202
GRI 202
GRI 203
GRI 203
202-1
202-2
203-1
203-2
Not Reported
Employee Relations
Not reported
Social Investment,
Supply Chain
a. When a significant proportion of employees
are compensated based on wages subject to minimum
wage rules, report the relevant ratio of the entry
level wage by gender at significant locations
of operation to the minimum wage. b. When
a significant proportion of other workers (excluding
employees) performing the organization’s activities
are compensated based on wages subject to minimum
wage rules, describe the actions taken to determine whether these workers are paid above the minimum wage. c. Whether a local minimum wage is absent or variable at significant
locations of operation, by gender. In circumstances in which different minimums
can be used as a reference, report which minimum wage is being used. d. The definition used for ‘significant locations of
operation’.
Proportion of senior management hired from
the local community
Infrastructure investments and services supported
Significant indirect economic impacts
None
Partial
None
Partial
MARKET PRESENCE
INDIRECT ECONOMIC PERFORMANCE
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
84
GRI 204
GRI 302
GRI 302
GRI 302
GRI 302
GRI 302
GRI 303
204-1
302-1
302-2
302-3
302-4
302-5
303-1
Not Reported
Environment Performance
Data, 2018 CDP Climate
Change
Not Reported
Environment Performance
Data
Environment Performance
Data
Not Reported
Water Efficiency and
Conversion, Environment Performance
Data
Proportion of spending on local suppliers
Energy consumption within the organization
Energy consumption outside of the organization
Energy intensity
Reduction of energy consumption
Reductions in energy requirements of products
and services
a. Total volume of water withdrawn, with a
breakdown by the following sources: i. Surface water,
including water from wetlands, rivers, lakes, and oceans; ii. Ground water;
iii. Rainwater collected directly and stored by the organization; iv.
Waste water from another organization; v. Municipal
water supplies or other public or private water utilities. b. Standards, methodologies, and assumptions used.
None
Full
None
None
Full
Full
Full
PROCUREMENT PRACTICES
ENERGY
WATER
INDICATOR
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
85
GRI 303
GRI 304
GRI 305
GRI 304
GRI 304
GRI 304
GRI 303
303-2
304-1
305-1
304-2
304-3
304-4
303-3
Water Efficiency and
Conversion
Biodiversity
Climate Change
and GHG Emissions,
Environment Performance
Data, 2018 CDP Climate
Change
Water Efficiency and
Conversion, Biodiversity
Biodiversity
Not reported
Water Efficiency and
Conversion, Environment Performance
Data
Water sources significantly affected by withdrawal
of water
Operational sites owned, leased, managed in, or adjacent to, protected
areas and areas of high biodiversity value outside
protected areas
Direct (Scope 1) GHG emissions
Significant impacts of activities, products, and services on biodiversity
Habitats protected or restored
IUCN Red List species and national conservation list species with habitats in
areas affected by operations
Water recycled and reused
Full
Full
Full
Full
Partial
None
Full
BIODIVERSITY
EMISSIONS
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
86
GRI 305
GRI 305
GRI 305
305-2
305-3
305-4
Climate Change
and GHG Emissions,
Environment Performance
Data, 2018 CDP Climate
Change
Climate Change
and GHG Emissions,
Environment Performance
Data, 2018 CDP Climate
Change
Climate Change
and GHG Emissions,
Environment Performance
Data, 2018 CDP Climate
Change
a. Gross location-based energy indirect (Scope 2) GHG emissions in metric
tons of CO2 equivalent. b. If applicable, gross market-
based energy indirect (Scope 2) GHG emissions
in metric tons of CO2 equivalent. c. If available, the gases included in the calculation; whether CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3, or all. d. Base year for the calculation,
if applicable, including: i. the rationale for choosing it; ii. emissions in the base
year; iii. the context for any significant changes in emissions that triggered
recalculations of base year emissions. e. Source
of the emission factors and the global warming
potential (GWP) rates used, or a reference to the GWP
source. f. Consolidation approach for emissions;
whether equity share, financial control, or
operational control. g. Standards, methodologies,
assumptions, and/or calculation tools used.
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Full
Full
Partial
87
GRI 305
GRI 305
GRI 305
305-5
305-6
305-7
Climate Change
and GHG Emissions,
Environment Performance
Data, 2018 CDP Climate
Change
Emissions of ozone-depleting
substances (ODS)
Environment Performance
Data
Reduction of GHG emissions
Reduction of GHG emissions
Nitrogen oxides (NOX), sulfur oxides (SOX), and
other significant air emissions
Full
-
Full
GRI 306 306-1 Water Efficiency and Conservation, Environment Performance
Data
Water discharge by quality and destination
Full
EFFLUENTS AND WASTE
INDICATORDISCLOSURE NUMBER DESCRIPTION LOCATION IN
REPORTLEVEL OF
DISCLOSURE
88
GRI 306
GRI 306
GRI 306
GRI 306
306-2
306-3
306-4
306-5
Waste Management
Environment Performance
Data
-
Water Efficiency and Conservation
a. Total weight of hazardous waste, with
a breakdown by the following disposal methods
where applicable: i. Reuse ii. Recycling iii.
Composting iv. Recovery, including energy recovery v. Incineration (mass burn)
vi. Deep well injection vii. Landfill viii. On-
site storage ix. Other (to be specified by the organization) b. Total
weight of non-hazardous waste, with a breakdown by the following disposal
methods where applicable: i. Reuse ii. Recycling iii.
Composting iv. Recovery, including energy recovery v. Incineration (mass burn)
vi. Deep well injection vii. Landfill viii. On-
site storage ix. Other (to be specified by the
organization) c. How the waste disposal method has been determined: i. Disposed of directly by the organization, or otherwise directly
confirmed ii. Information provided by the waste disposal contractor iii.
Organizational defaults of the waste disposal
contractor
a. Total weight for each of the following:
i. Hazardous waste transported ii. Hazardous
waste imported iii. Hazardous waste exported
iv. Hazardous waste treated b. Percentage
of hazardous waste shipped internationally. c. Standards, methodologies,
and assumptions used.
Transport of hazardous waste
Water bodies affected by water discharges
and/or runoff
Full
Full
-
Partial
89
GRI 301
GRI 307
GRI 308
GRI 308
GRI 301
GRI 301
301-1
307-1
308-1
308-2
301-2
301-3
Not Reported
Spills and Emergency response,
Environmental Management, Environment Performance
Data
Supply Chain Management
Supply Chain Management
Water Efficiency and
Conversion
Products are sold and removed
via truck or pipeline. We
do not package our product for
sale, so there are no packaging materials to
reclaim and none of the product comes back for
recovery.
Materials used by weight or volume
Non-compliance with environmental laws and
regulations
New suppliers that were screened using
environmental criteria
Negative environmental impacts in the supply chain
and actions taken
Recycled input materials used
Reclaimed products and their packaging materials
None
Full
Partial
Partial
Partial
Full
MATERIALS
ENVIRONMENTAL COLLAPSE
SUPPLIER ENVIRONMENTAL ASSESSMENT
INDICATOR
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
90
GRI 401
GRI 402
GRI 403
GRI 401
GRI 401
401-1
402-1
403-1
401-2
401-3
Employee Relations
Not Reported
Not Reported
Not Reported
Not Reported
New employee hires and employee turnover
Minimum notice periods regarding operational
changes
a. The level at which each formal joint management-worker health and safety
committee typically operates within the
organization. b. Percentage of workers whose work, or
workplace, is controlled by the organization,
that are represented by formal joint management-worker health and safety
committees.
Benefits provided to full-time employees that are
not provided to temporary or part-time employees
Parental leave
Partial
None
None
None
None
EMPLOYMENT
LABOR/MANAGEMENT RELATIONS
OCCUPATIONAL HEALTH AND SAFETY
INDICATOR
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
91
GRI 403
GRI 403
GRI 404
GRI 404
GRI 404
403-2
403-4
404-1
404-2
404-3
Health and Safety
Not Reported
Not Reported
Employee Relations
Employee Relations
a. Types of injury, injury rate (IR), occupational
disease rate (ODR), lost day rate (LDR), absentee
rate (AR), and work-related fatalities, for all employees,
with a breakdown by: i. region; ii. gender. b. Types
of injury, injury rate (IR), and work-related fatalities, for all workers (excluding employees) whose work,
or workplace, is controlled by the organization, with a breakdown by: i. region; ii.
gender. c. The system of rules applied in
recording and reporting accident statistics.
Health and safety topics covered in formal
agreements with trade unions
Average hours of training per year per employee
Programs for upgrading employee skills and transition assistance
programs
Percentage of employees receiving regular
performance and career development reviews
Full
None
None
Full
Full
TRAINING AND EDUCATION
INDICATORDISCLOSURE NUMBER DESCRIPTION LOCATION IN
REPORTLEVEL OF
DISCLOSURE
92
GRI 405
GRI 405
GRI 406
GRI 407
405-1
405-2
406-1
407-1
Employee Relations
Employee Relations
Not Reported
Not Reported
a. Percentage of individuals within the organization’s
governance bodies in each of the following diversity categories: i. Gender; ii.
Age group: under 30 years old, 30-50 years old, over
50 years old; iii. Other indicators of diversity
where relevant (such as minority or vulnerable
groups). b. Percentage of employees per employee
category in each of the following diversity
categories: i. Gender; ii. Age group: under 30 years old, 30-50 years old, over
50 years old; iii. Other indicators of diversity where relevant (such
as minority or vulnerable groups).
Ratio of basic salary and remuneration of women
to men
Incidents of discrimination and corrective actions
taken
Operations and suppliers in which the right to
freedom of association and collective bargaining may
be at risk
Partial
Full
None
None
DIVERSITY AND EQUAL OPPORTUNITY
NON-DISCRIMINATION
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
INDICATOR
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
93
GRI 408
GRI 409
GRI 410
GRI 411
GRI 412
GRI 412
408-1
409-1
410-1
411-1
412-1
412-3
Human Rights
Not Reported
Human Rights
Human Rights
Not Reported
Human Rights
Operations and suppliers at significant risk for
incidents of child labor
Operations and suppliers at significant risk for incidents of forced or
compulsory labor
Security personnel trained in human rights policies or
procedures
Incidents of violations involving rights of
indigenous peoples
Operations that have been subject to human rights reviews or impact
assessments
Significant investment agreements and contracts that include human rights clauses or that underwent
human rights screening
Partial
None
Partial
Full
None
Partial
CHILD LABOR
FORCED OR COMPULSORY LABOR
SECURITY PRACTICES
RIGHTS OF INDIGENOUS PEOPLES
HUMAN RIGHTS ASSESSMENT
INDICATOR
INDICATOR
INDICATOR
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
DESCRIPTION
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
94
GRI 412 412-2 Human RightsEmployee training on human rights policies
or procedures
Partial
GRI 414
GRI 413
GRI 205
GRI 414
GRI 413
414-1
413-1
205-1
414-2
413-2
Human Rights, Supply Chain Management
-
Data not available
Human Rights, Supply Chain Management
Not Reported
New suppliers that were screened using social criteria
Operations with local community engagement, impact assessments, and development programs
Operations assessed for risks related to corruption
Negative social impacts in the supply chain and
actions taken
Operations with significant actual and potential negative impacts on
local communities
Partial
-
None
Partial
None
SUPPLIER SOCIAL ASSESSMENT
LOCAL COMMUNITIES
ANTI CORRUPTION
INDICATOR
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE
95
GRI 205
GRI 205
205-2
205-3
Transparency, Corporate
Governance and Business Ethics
Not Reported
a. Total number and percentage of governance
body members that the organization’s anti-corruption policies
and procedures have been communicated to, broken down by region.
b. Total number and percentage of employees
that the organization’s anti-corruption policies
and procedures have been communicated to, broken down by employee category and region. c. Total
number and percentage of business partners
that the organization’s anti-corruption policies
and procedures have been communicated to, broken down by type of
business partner and region. Describe if the
organization’s anti-corruption policies and procedures have been
communicated to any other persons or organizations.
d. Total number and percentage of governance body members that have received training on anti-
corruption, broken down by region. e. Total number and
percentage of employees that have received training
on anti-corruption, broken down by employee
category and region.
Confirmed incidents of corruption and
actions taken
Partial
None
GRI 415 415-1 Public Policy Engagement
and Contributions
Political contributions Full
PUBLIC POLICY
INDICATORDISCLOSURE NUMBER DESCRIPTION LOCATION IN
REPORTLEVEL OF
DISCLOSURE
96
GRI 206
GRI 419
206-1
419-1
Not Reported
Not Reported
Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices
a. Significant fines and non-monetary sanctions for non-compliance with
laws and/or regulations in the social and economic
area in terms of: i. total monetary value of significant fines; ii. total
number of non-monetary sanctions; iii. cases
brought through dispute resolution mechanisms.
b. If the organization has not identified any non-
compliance with laws and/or regulations, a brief
statement of this fact is sufficient. c. The context against which significant fines and non-monetary sanctions were incurred.
None
None
ANTI-COMPETITIVE BEHAVIOR
SOCIOECONOMIC COMPLIANCE
INDICATOR
INDICATOR
DISCLOSURE NUMBER
DISCLOSURE NUMBER
DESCRIPTION
DESCRIPTION
LOCATION IN REPORT
LOCATION IN REPORT
LEVEL OF DISCLOSURE
LEVEL OF DISCLOSURE